If you'd like
to unload the noisy old refrigerator, or the washer that
doesn't clean so well anymore; if the dishwasher and
freezer are old and older — it's time to go shopping.
States and the federal government are going to make it
worth your while, in the appliance version of Cash for
Clunkers.
The Residential Energy Property Credit
allows taxpayers who buy energy-efficient goods for
their home to pay fewer taxes this year and next.
Install a qualifying energy-efficient improvement in
your home — insulation, windows, heating system, for
example — and 30 percent of its cost (up to $1,500 for
the two years) can be knocked off your federal tax
liability.
Complete "Form 5695, Residential
Energy Credits," and file it with your federal tax
return. (Form is at www.IRS.gov,or call 1-800-829-3676
to order.)
While you maneuver through these
programs, keep in mind that there might be additional
rebates coming to you from utilities. (A roundup is at
www.dsireusa.org, or contact your local utility.)
In addition, many manufacturers and
retailers likely will offer additional incentives to
capture customers, so keep your eyes peeled.
Finally, don't forget the reason for
all this fuss and bother — energy savings. Switching
out an old appliance, an energy hog, with a new,
high-efficiency one will save energy — and that means
money — every time it operates. That might not make
the appliance free as it arrives at your home, but over
time, it will. The appliance can pay for itself in
savings, and with the lowered initial price due to
incentives and rebates, that will happen sooner.
Check with your own state for more
rebates; some states, like Minnesota, have limited
resources for rebates.
