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Cash for Clunkers for appliances

E-mail|Link Posted by Andrew Chan October 21, 2009 04:30 PM

What is the deal with the plan I heard about for a "cash for clunker-appliances" scheme? Is it or is it not for real, and being implemented as part of the Mass income tax filings?

In mid-July the U.S. Department of Energy (DOE) announced $300 million dollars of funding for the Cash for Clunkers Appliances program. This program is one initiative under the American Recovery and Reinvestment Act of 2009 (ARRA). The program is expected to begin in late 2009 and earlier 2010 and will provide consumers with rebates of as much as $250 dollars for the purchase of energy efficient appliances.

Each state and territory that chooses to participate will administer their own rebate program. All 56 states and territories have agreed to participate however; it is unclear how many of them have submitted proposals to the DOE detailing their individual programs as of the Oct. 15 deadline.

The appliances eligible for a rebate and the amounts of those rebates will vary from state to state however the DOE has recommended that rebates of $50 dollars to $250 dollars be offered for the following Energy Star appliances:

* Boilers
* Central air conditioners
* Clothes washers
* Dishwashers
* Freezers
* Furnaces (oil and gas)
* Heat pumps (air source and geothermal)
* Refrigerators
* Room air conditioners
* Water heaters

The $300 million dollars will be allocated to the participating states and territories based on their population. For a list of the amounts allocated to your state or territory, visit the DOE’s web site at http://www.energy.gov/news2009/documents2009/EE_EnergyStar_State_Allocations.pdf.

Massachusetts will receive $6.2 million dollars to fund their rebate program. The plan submitted by the Patrick administration is currently being reviewed by the DOE. If approved, the Massachusetts Home Appliance Energy Efficiency Rebate Program will begin in February 2010 and will continue as long as the rebates last. Under the Massachusetts program, rebates are expected to be issued for purchases of new, qualified, refrigerators, freezers, dishwashers and clothes washers. The amounts of those rebates are not yet known.

tags ARRA, Cash for Clunkers Appliances

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Jill Boynton is co-founder of Cornerstone Financial Planning in Newington, N.H. Along with traditional financial planning services, Boynton provides analysis specifically for divorce.

Andrew Chan is the founder of Integrative Financial Advisors in Framingham. He provides comprehensive financial planning advice and investment management services. He has been an adviser for over 12 years and works with clients to integrate all aspects of their finances including investments, retirement, education funding, and tax planning.

Cheryl Costa is a managing director at AFW Wealth Advisors, which has offices in Natick and Purchase, N.Y. She advises clients on investing, education funding, and estate planning. She holds a master’s in business administration from Boston University.

Jamie Downey has been an accountant for more than 14 years. He's a partner at Downey & Co. in Braintree. Prior to joining the firm, he served as a manager in the audit department of accounting firm KPMG.