Builders & Manufacturers Incentives
Appliances
What are the tax incentives for high-efficiency appliances?
Manufacturers are eligible for tax credits for qualifying models of dishwashers, clothes washers, and refrigerators. The credits are available for models produced in 2006 and 2007.
Read an IRS summary of the credit here.
Who is eligible for the tax incentives?
Product manufacturers are eligible for the credits. (While consumers cannot take these credits directly, they may see promotion of these models by manufacturers, or by state or utility efficiency programs, during the next two years.)
What are the incentives and how do they work?
Credits are available to manufacturers as follows:
- Clothes washers: $100 for models that meet the 2007 Energy Star© criteria.
- Refrigerators have three tiers of incentives:
- $75 for models that save at least 15% relative to 2001 federal standards (this credit is available only in 2006). This is the same as the current Energy Star criteria.
- $125 for models that save at least 20% relative to 2001 federal standards.
- $175 for models that save 25% or more relative to 2001 federal standards.
- Dishwashers: Models that meet the 2007 Energy Star criteria—Energy Factor 0.65 for standard-size dishwashers, EF 0.88 for compact dishwashers—are eligible for a credit. The incentive for standard-size dishwasers will be $32.31 per qualifying dishwasher. The incentive for compact dishwashers has yet to be determined by IRS and DOE.
Manufacturers only receive these credits for the increase in production of qualifying appliances over a three-year rolling baseline. Each manufacturer is limited to a total of $75 million for all credits under this provision. Of that cap, no more than $20 million can be claimed for the lowest tier of qualifying refrigerators.
What do I have to do to qualify for these incentives?
Only manufacturers can qualify directly for the credits. (However, consumers may benefit by knowing which models qualify, because they may be subject to special promotions.)
Refrigerators: Information on the refrigerators that qualify can be found on the Energy Star website. This database includes information on how much each model exceeds the federal standard and hence can be used to determine which incentive tier a model falls under.
Clothes washers: The 2007 Energy Star criteria for clothes washers mandate a Modified Energy Factor (MEF) of 1.72, and a maximum Water Factor (WF) of 8.0.
Dishwashers: The 2007 Energy Star criteria for dishwashers mandate an Energy Factor (EF) of 0.65 for standard-size dishwashers, and an EF 0.88 for compact dishwashers.
Where can I learn more about qualifying products?
For information on high-efficiency appliances:
- Refrigerators
- Clothes washers
- Dishwashers
