Governor Kaine Announces Energy Efficiency Rebates and
Third Annual Energy Sales Tax Holiday
– Consumers can purchase energy-efficient products tax free October 9-12; claim state rebates and federal credits on qualifying products –
STAUNTON – Governor Timothy M. Kaine today announced the launch of the Virginia EnergyEfficiency Rebate program, a new program to encourage the purchase ofhigh-efficiency equipment and products. The program will use $15 million infunds from the American Recovery and Reinvestment act to provide rebates toresidential and commercial consumers on certain qualifying equipment andproducts. Homeowners will be eligible for rebates for 20 percent of the costsof the products, up to $2,000, and commercial consumers will be eligible for 20percent of their costs up to $4,000. Rebates will be distributed on a first come-firstserved basis.
Governor Kaine also highlighted Virginia 's third annualsales tax holiday on ENERGY STAR and WaterSense qualified products, which willtake place October 9-12, 2009. During this annual holiday, consumers can savemoney by buying certain qualified products tax-exempt, which will also deliversavings for years to come through lower home utility bills. As with last year'sholiday, high-efficiency products with ENERGY STAR or WaterSense certificationwill be exempt from sales tax.
"With our annual sales tax holidayon energy efficient products and the new Energy Efficiency Rebate program,Virginians can save money on utility bills and lower our impact on theenvironment at the same time," said Governor Kaine. "In this tough economy, theseprograms are one way the Commonwealth is helping citizens save money andconserve resources, while giving a boost to businesses."
Governor Kaine made today'sannouncements during an event at Lowe's in Staunton , one of hundreds of retailers ofeligible products throughout the Commonwealth.
Consumers wishing to receive arebate through the Virginia Energy Efficiency Rebate program will be requiredto complete an application form, which will be available online from the Department of Mines, Minerals and Energy.Residential consumers will be eligible for rebates on central air conditioners,heat pumps, furnaces, hot water heaters, programmable thermostats, , as well asfor insulation and replacement windows. Commercial consumers will be eligibleto receive rebates on heating and cooling equipment, hot water heaters, windowreplacements, lighting upgrades, high efficiency motors, compressed air andsteam system upgrades, as well as insulation and replacement windows. Beginning Tuesday, October 6, consumers cansign up for an email alert through the DMME's website that will tell them whenapplications for rebates are being accepted.
During the annual sales taxholiday, Virginians will be exempt from paying sales tax on ENERGY STAR andWaterSense qualified products that cost $2,500 or less. Even products purchasedonline during the holiday will be exempt from sales tax if the seller has theitems in-stock for immediate shipment. Eligible products include energy efficientproducts such as compact fluorescent light bulbs, ceiling fans, clotheswashers, dehumidifiers, dishwashers, programmable thermostats, refrigeratorsand room air conditioners, and water efficient products such as certain toiletsand faucets. Only purchases made for personal, non-commercial will qualify forthe tax exemption.
Governor Kaine also highlighted theavailability of federal tax credits made available through the AmericanRecovery and Reinvestment Act. The Home Energy Efficiency Improvement TaxCredits provide a 30% tax credit, up to $1,500, for, the purchase andinstallation of specific products from January 1, 2009, through December 31,2010. Qualifying products include energy-efficient windows, insulation, doors,roofs, and heating and cooling equipment in existing homes. More information onthe federal tax credits is available at www.energystar.gov.
In addition to exempting certainEnergy Star and WaterSense products from the sales tax during the four-day taxholiday, retailers may also choose to "absorb," or pay themselves, the salestax on any nonexempt merchandise they sell. Retailers who voluntarily absorbthe sales tax must pay the tax themselves to the Tax Department.
"Thanks to the General Assembly andGovernor Kaine, Virginia consumers now have three sales tax holidays when they are able to shop tax freeon exempt items or shop with retailers that absorb the sales tax for theconsumer. The Energy Star, Hurricane Preparedness Holiday and the Back toSchool Tax Holiday offer retailers three opportunities to create tax freeshopping for the consumer," said George C. Peyton, Vice President of GovernmentRelations for the Retail Merchants Association. "The consumer wins when thestate exempts tax on certain items and when the retailer absorbs the tax on nonexempt items. The sales tax holidays do increase consumer traffic to thosestores that are selling tax exempt item and for those stores that participateby advertising that they will absorb the tax on non exempt items, such asfurniture, jewelry and apparel. This is a great opportunity for retailers tojump start their holiday sales."
More information on the Virginia Energy Efficiency Rebate program is availableonline at www.dmme.virginia.gov.More information on the ENERGY STAR and WaterSense annual sales tax holiday,including a list of qualifying products, is available from the VirginiaDepartment of Taxation.
Today's announcement comes asGovernor Kaine continues to advance his "Renew Virginia " initiative-an effort to promoterenewable energy, create green jobs, and encourage preservation of theenvironment. During his administration, Governor Kaine has incentivized theproduction of cleaner energy, surveyed the emissions of facilities previouslygrandfathered out of the Clean Air act, dedicated over a billion dollars toChesapeake Bay cleanup, protected nearly 350,000 acres of open space, and ledthe effort to promote regional cooperation to combat climate change.
Formore information on Renew Virginia ,visit www.governor.virginia.gov.
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