Energy Tax Credit

[AccTaxMan]

Does anyone know whether energy efficient home appliance like washer, dryer or refrigerator qualify for energy tax credit in 2011? A client said the salesman told him he should be able to get energy tax credit. I have looked on EnergyStar.gov. but I could not find anything about home appliance for 2011 tax credit.

[Koss]

Credits

It doesn't look like the credit is available for a washer, dryer, or refrigerator.

The credit IS available, in some cases, for a furnace, air conditioner, or water heater. It is also available for certain types of windows, doors, insulation and roofing.

These credits are discussed on page 256 of Publication 17 (2011).

There are two different credits:

- Nonbusiness energy property credit
- Residential energy efficient property credit

The rules are complicated, and the credits have limitations, some of which are based on whether the taxpayer has claimed any credits in prior years.

But you may be able to quickly rule out your client's purchases after you review the rules, and clarify exactly what he purchased.

The short answer is:

The EnergyStar label doesn't automatically mean that the purchase qualifies for a tax credit.

BMK

[Lion]

There may be state credits or utility company credits or other non-tax credits.

[Possi]

State tax credit

There might be a state tax credit for the appliances.

VA offers 20% of the SALES TAX paid on energy efficient appliances. It is hardly worth the trouble.

Otherwise, the credit for appliances is for the Manufacturer, and not the consumer.

[FEDUKE404]

None

Does anyone know whether energy efficient home appliance like washer, dryer or refrigerator qualify for energy tax credit in 2011? A client said the salesman told him he should be able to get energy tax credit. I have looked on EnergyStar.gov. but I could not find anything about home appliance for 2011 tax credit.

I'm not aware of there EVER being any federal tax credits for such.

A review of Form 5695 should confirm that.

As others have noted, some states have offered incentives such as a write-off on state income tax and, IIRC, for others a "sales tax holiday" on qualifying appliances.

FE

[jimenright]

The power company

in my area gives rebates for appliances such as your client purchased. They are not eligible for the federal energy tax credit.

[taxea]

Salesmen will say anything to make a sale....and he did say "may" not "will"