Washer and Dryer tax credits are available to consumers.
When seeking to purchase a new washer and dryer, many consumers have questions as to whether the purchase will qualify them for a tax credit. Consumers should be aware of the different types of taxes and, therefore, different types of tax credits. There are federal tax credits, that do not apply to household purchases, and there are tax credits to your state taxes for purchasing these household efficient items to do apply.
Federal Income Tax Credits
There is no federal tax credit that applies to the purchase of a new washer and dryer. There are, however, two types of energy efficient tax credits set forth by the Internal Revenue Service, neither of which apply to the purchase of most household appliances.
The Residential Energy Efficient Tax Credit applies only to improvements homeowners make to the "building envelope" and for the purchase of high-efficiency heating, cooling and water heating equipment. The Residential Renewable Energy Tax Credit applies to purchases of solar water heat, photovoltaics, wind turbines, fuel cells, geothermal heat pumps and other solar electric technologies. Washers and dryers are not included within either of these categories of federal tax credits.
State Income Tax Credits
Although the purchase of a washing machine and clothes dryer will not make consumers eligible for a federal income tax credit, consumers who purchase select energy-efficient household appliances may be eligible for a state income tax credit. Each state has different requirements for state income tax credits. Consumers should review the Database of State Incentives for Renewables and Efficiency prior to purchasing a new energy efficient household washing machine or clothes dryer to see if the item qualifies.
Federal Tax Credits for Manufacturers of Energy-efficient Appliances
Although a federal tax credit is not available directly to consumers of the purchase of an energy-efficient washing machine or clothes dryer, a federal tax credit is available to the manufacturers of some appliances. Eligible appliances include some Energy Star qualified dishwashers and some Energy Star qualified washing machines. Although consumers do not benefit directly from this federal tax credit, they may benefit from increased availability of these appliances and possible price reductions from the manufacturer.
Power Company Rebates
Some power companies give rebates to their customers for purchasing energy-efficient appliances. Consumers should check with their power company to see which purchases qualify. The participating power companies for each state are listed in the Database of State Incentives for Renewables and Efficiency. Consumers will find that some power companies offer rebates for the purchase of certain dishwashers, washing machines, clothes dryers, refrigerators, freezers, air conditioners and even CFL light bulbs.
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