Gov. Timothy M. Kaine today announced the launch of the Virginia Energy Efficiency Appliance Rebate program, a new program to encourage the purchase of high-efficiency appliances and products. The program will use $15 million in funds from the American Recovery and Reinvestment act to provide rebates to residential and commercial consumers on certain qualifying appliances and equipment. Homeowners will be eligible for rebates for 20 percent of the costs of the products, up to $2,000, and commercial consumers will be eligible for 20 percent of their costs up to $4,000. Rebates will be distributed on a first come-first served basis.
Gov. Kaine also highlighted Virginia’s third annual sales tax holiday on ENERGY STAR and WaterSense qualified products, which will take place October 9-12, 2009. During this annual holiday, consumers can save money by buying certain qualified products tax-exempt, which will also deliver savings for years to come through lower home utility bills. As with last year’s holiday, high-efficiency products with ENERGY STAR or WaterSense certification will be exempt from sales tax. Sales exempt purchases may also be eligible for the state’s new rebate program.
“With our annual sales tax holiday on energy efficient products and the new Energy Efficiency Appliance Rebate program, Virginians can save money on utility bills and lower our impact on the environment at the same time,” said Kaine. “In this tough economy, these programs are one way the Commonwealth is helping citizens save money and conserve resources, while giving a boost to businesses.”
Kaine made today’s announcements during an event at Lowe’s in Staunton, one of hundreds of retailers of eligible products throughout the Commonwealth.
Consumers wishing to receive a rebate through the Virginia Energy Efficiency Rebate program will be required to complete an application form, which will be available online from the Department of Mines, Minerals and Energy. Residential consumers will be eligible for rebates on air conditioners, heat pumps, furnaces, hot water heaters, washing machines, dishwashers, and refrigerators, as well as for insulation and replacement windows. Commercial consumers will be eligible to receive rebates on heating and cooling equipment, hot water heaters, window replacements, lighting upgrades, high efficiency motors, compressed air and steam system upgrades, as well as insulation and replacement windows. Beginning Tuesday, October 6, consumers can sign up for an email alert through the DMME’s website that will tell them when applications for rebates are being accepted.
During the annual sales tax holiday, Virginians will be exempt from paying sales tax on ENERGY STAR and WaterSense qualified products that cost $2,500 or less. Even products purchased online during the holiday will be exempt from sales tax if the seller has the items in-stock for immediate shipment. Eligible products include energy efficient products such as compact fluorescent light bulbs, ceiling fans, clothes washers, dehumidifiers, dishwashers, programmable thermostats, refrigerators and room air conditioners, and water efficient products such as certain toilets and faucets. Only purchases made for personal, non-commercial will qualify for tax emeption.
Kaine also highlighted the availability of federal tax credits made available through the American Recovery and Reinvestment Act. The Home Energy Efficiency Improvement Tax Credits provide a 30 percent tax credit, up to $1,500, for, the purchase and installation of specific products from January 1, 2009, through December 31, 2010. Qualifying products include energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes. More information on the federal tax credits is available at www.energystar.gov.
In addition to exempting certain ENERGY STAR and WaterSense products from the sales tax during the four-day tax holiday, retailers may also choose to “absorb,” or pay themselves, the sales tax on any nonexempt merchandise they sell. Retailers who voluntarily absorb the sales tax must pay the tax themselves to the Tax Department.
“Thanks to the General Assembly and Governor Kaine, Virginia consumers now have three sales tax holidays when they are able to shop tax free on exempt items or shop with retailers that absorb the sales tax for the consumer. The Energy Star, Hurricane Preparedness Holiday and the Back to School Tax Holiday offer retailers three opportunities to create tax free shopping for the consumer,” said George C. Peyton, Vice President of Government Relations for the Retail Merchants Association. “The consumer wins when the state exempts tax on certain items and when the retailer absorbs the tax on non exempt items. The sales tax holidays do increase consumer traffic to those stores that are selling tax exempt item and for those stores that participate by advertising that they will absorb the tax on non exempt items, such as furniture, jewelry and apparel. This is a great opportunity for retailers to jump start their holiday sales.”
More information on the Virginia Energy Efficiency Appliance Rebate program is available online at www.dmme.virginia.gov. More information on the ENERGY STAR and WaterSense annual sales tax holiday, including a list of qualifying products, is available from the Virginia Department of Taxation.
Today’s announcement comes as Kaine continues to advance his “Renew Virginia” initiative—an effort to promote renewable energy, create green jobs, and encourage preservation of the environment. During his administration, Kaine has incentivized the production of cleaner energy, surveyed the emissions of facilities previously grandfathered out of the Clean Air act, dedicated over a billion dollars to Chesapeake Bay cleanup, protected nearly 350,000 acres of open space, and led the effort to promote regional cooperation to combat climate change.
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