Cash for Appliances Details Emerging – State by State

Cash for Appliances, the son of Cash for Clunkers, (and now, the father of cash for caulkers) is a more widely diverse state by state stimulus program whereby consumers can enjoy rebates up to a few hundred dollars while obtaining assistance on disposal of old appliances like refrigerators in some states.  The problem is, there are no federal mandated consistent offerings and each state had to submit their proposals by mid-October 2009.  Since the initial cash for appliances announcement occurred (Clunkers in the Kitchen), more details have emerged on the $300 Million federally funded program.  For instance, NY submitted its plan for what it has termed the “Great Appliance Swap Out” whereby New York can issue 170,000 rebates totaling $16.8 Million in February 2010.  Meanwhile, Florida is scheduled for April 2010 and details have yet to emerge from many other states.

What Appliances Qualify for Cash for Appliances?

As more details emerge, more may be tacked on to the list, but at the moment, the following appliances are generally understood to be covered under the program:

• Central air conditioners
• Room air conditioners
• Washing machines
• Dishwashers
• Refrigerators
• Freezers
• Water heaters

How to Qualify and Get Rebate for Cash for Appliances:

There are a few simple steps to ensure that your purchase meets the criteria and you will be reimbursed:

• Since each state is submitting their own proposal, ensure you’re in compliance with your state’s particular plan
• Most rebates will range from $50 up to $250
• In order to qualify, expect to purchase an energy-star energy efficient appliance
• Depending on your state, you may be able to get your rebate right in your store of purchase or you may have to download a form and submit it

Should You Participate in Cash for Appliances?

It wouldn’t be prudent to go out and purchase new appliances that you don’t need just for the sake of doing so.  Some common tips to weigh your decision as to whether it makes sense for your household are the following:

• How old is your current appliance?
• What kind of energy savings will you realize over time?
• How large is the rebate for the particular appliance?
• When you factor in these various costs, perform a Net Present Value analysis and weigh whether it is a net positive when you purchase

Here are the New York details as submitted:

New York Cash for Appliances Details:

• $75 rebate for refrigerators
• $75 for clothes washers
• $50 for freezers
• $500 for a three-appliance package, which includes dishwashers as eligible appliances
• Timing = 1 week in Feb 2010

Don’t Miss These Key Tax-Related Articles:

• Flex Spending Account Eligible Expenses – Use it or Lose It!
• FICA Limits 2009-2010
• Wash Rule – End of Year Trading Strategies
• How Does Deferred Compensation Work?