Purchasing new energy efficient appliances may put federal tax credits and dollars in your pocket

Date: 
02/16/2010

Federal tax credits, the State of Illinois Recovery Act Rebate and Chicagoland Natural Gas Savings Program rebates are available for energy efficiency, reducing initial costs and monthly energy bills.

Federal tax credits
Included in these incentives for existing homes used as principal residences are biomass stoves; heating, ventilating, and air conditioning; insulation; roofs; water heaters (non-solar); and windows and doors. They are scheduled for a credit of 30% of cost for up to $1500 thru Dec. 31, 2010.

Geothermal heat pumps, small wind turbines and solar energy systems can be 30% of cost but with no upper limit and their expiration date is Dec. 31, 2016. It covers new construction in addition to existing homes all of which must be primary residences. The last Federal offering is for residential fuel cell and micro turbine system. It too expires on Dec. 31, 2016 and is for primary residences that are existing homes or new construction.

Not all Energy Star qualified products qualify for the tax credit, so buyer beware.

State of Illinois rebates
Funded by the American Recovery and Reinvestment Act and the Illinois Department of Commerce and Economic Opportunity (DECO), the Illinois Energy Star Appliance Rebate Program provides incentives to replace older appliances with specific residential Energy star qualified appliances, water heaters, and HVAC equipment.  Purchases must be through participating retail stores or contractors.

The program is being rolled out in two phases.  The first started Jan. 31 for rebates on qualifying heating and cooling equipment through participating HVAC contractors and water heaters at participating retailers while funding lasts.

Phase two is for point of purchase from participating retailers for eligible clothes washers, dishwashers, room air conditioners, refrigerators and freezers beginning Apr. 16 through Apr. 25.

Chicagoland Natural Gas Savings Program
Purchases of gas furnaces, boilers, storage water heaters and tankless water heaters made through Feb. 15 were given different discounts but there is now expected to be a new program soon.  Check this website to find the new offerings.

According to Wicker Park resident Tim Kolecke, these rebate and discount opportunities cut costs substantially.  Just importantly the higher energy efficiency mean lowerly monthly bills, recovering the initial investment in a few short years.

Related:

Comments

For once I feel like we have

For once I feel like we have become wiser. I couldn't agree more with incentives for energy efficient appliances, only encouraging mass consumption for this kind of appliances will show positive results on energy consumption. This is how I got my Frigidaire parts.

Iowa appliance rebates

Well then it will be a good news because government rebates for buying greener appliances, especially Energy Star appliances—this just similar t Cash for Clunkers and we might expect how well it will work out. They are initiated at the state level. So far, there are Minnesota appliance rebates, and now Iowa appliance rebates. Energy Star appliances cost the same as others, and can save you about a payday loans worth on water and electricity – so if you were going to buy a washer and dryer anyway, what's it going to hurt?

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