In July the US Department of Energy Secretary Steven Chu announced that almost $300 million dollars of funding was now available to help people replace their old energy-guzzling kitchen appliances with new efficient energy-star qualified appliances.
While this is a federally funded program each state can draw up its own rules concerning allocation of the funds. Its expected many of the US states will have the program up and running later this year or early next year.
Purchasing an energy-star rated appliance is a good, money wise investment however, they can be slightly more expensive than their energy-guzzling counterparts. Most people realize the long term benefits of an energy-star appliance but balk at the extra up-front costs.
The Government is hoping the cash back incentive will encourage people to upgrade their kitchens with the new, more efficient appliances now available thus saving energy and reducing pollution. Certainly a proactive step in reducing the carbon footprint of the people.
A word of warning though. Be aware of the tax implications of the rebates. People who participated in the Cash for Clunkers program have to pay tax on the rebates they received. Many people were not aware of this when they traded in their old vehicles. I don't expect this program to be much different.
Is taxes any reason to avoid the program? No. If you were already planning an appliance upgrade then take advantage of the rebate. Any taxes you may pay on the rebate will be less than the rebate itself and the money you will save with an energy-star rated appliance will certainly be worth it.
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