Note: These credits have been extended to 2013, with modifications in the eligibility requirements for each of the products. For dishwashers and clothes washers, the least stringent efficiency tiers were dropped—only higher efficiency equipment is eligible. See the home page.
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 from January 1, 2012 through December 31, 2013.
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 in a tiered system depending on the efficiency of the model and date of manufacture to manufacturers of clothes washers, refrigerators and dishwashers.
- $150 for residential or commercial clothes washers manufactured in 2008, 2009 or 2010 which meet/exceed a 2.0 modified energy factor (MEF) and do not exceed a 6.0 water consumption factor
- $250 for residential or commercial models manufactured in 2008, 2009 or 2010 which meet/exceed a 2.2 MEF and do not exceed a 4.5 water consumption factor
- $175 for Residential or commercial, top-loading models manufactured in 2011 which meet/exceed 2.2 MEF and do not exceed 4.5 water consumption factor.
- $225 for Residential or commercial, top-loading models manufactured in 2011 which meet/exceed 2.4 MEF, do not exceed 4.2 water consumption factor
- $225 for Residential or commercial, front-load-loading models manufactured in 2011 which meet/exceed 2.8 MEF, do not exceed a 3.5 water consumption factor.
- $100 for models manufactured in 2008, 2009 or 2010 consuming at least 25% but not more than 29.9% fewer kilowatt hours per year than the 2001 energy conservation standards
- $200 in the case of models manufactured in 2008, 2009 or 2010 which consume at least 30% less energy than the 2001 energy conservation standards
- $150 for models manufactured in 2011 which consume at least 30% less energy relative to the 2001 federal standard.
- $200 for models manufactured in 2011 which consume at least 35% less energy relative to the 2001 federal standard.
- $ 75 for dishwashers manufactured in 2008, 2009 or 2010 which use no more than 307 kilowatt hours per year and 5.0 gallons of water per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings)
- $ 25 for dishwashers manufactured in 2011 which use no more than 307 kilowatt hours per year and 5.0 gallons of water per cycle (ENERGY STAR level effective July 1, 2011)
- $ 50 for dishwashers manufactured in 2011 which use no more than 295 kilowatt hours per year and 4.25 gallons of water per cycle
- $ 75 for dishwashers manufactured in 2011 which use no more than 289 kilowatt hours per year and 4.0 gallons of water per cycle
The credit to manufacturers of qualifying clothes washers, refrigerators and dishwashers is capped at $75 million for the period of 2008-2010. Exception to the cap: the most efficient refrigerator (30%) and clothes washer (2.2 MEF/4.5 wcf) models described above are not subject to the cap.
The credit to manufacturers is capped at $25 million for 2011. The most efficient refrigerators (35%) and clothes washers (2.8 MEF/3.5 WCF) are exempted from this cap
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.)
Where can I learn more about qualifying products?
For information on high-efficiency appliances:
The American Recovery and Reinvestment Act (ARRA) established a tax credit program for facilities that manufacture several types of energy equipment as a means of improving US manufacturing capacity for clean energy products. The Advanced Energy Manufacturing Tax Credit (MTC) was authorized in Section 1302 of ARRA and requires the Secretary of Treasury to work in consultation with the Secretary of Energy. The MTC is also referred to as Section 48C of the Internal Revenue Code.
Who is eligible for the Manufacturing Tax Credit?
Manufacturers of solar, wind, and geothermal energy equipment; fuel cells; microturbines; batteries; electric cars; electric grids to support transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions can qualify for the investment tax credit. The tax credit does not support energy generation projects, but rather the manufacturing facilities that support generation and conservation.
What is the MTC and how does it work?
The program will provide a 30% tax credit for investments in 183 manufacturing facilities in 43 states, allocated on a competitive basis depending on a range of criteria. IRS has created a spreadsheet of certified applications. Eligible projects must be completed on or after February 17, 2009 (date ARRA legislation was signed) and commissioned prior to February 17, 2013. The deadline for applications was October 16, 2009 - over 500 applications were received, totaling $8 billion. Due to the level of interest in this program, Congress may provide additional funds to expand the program.