Virginia Energy Tax Holiday begins Oct. 9

Posted October 7, 2009
By Norfolk District Public Affairs

10/07/2009 - NORFOLK, Va. — Virginia Governor Tim Kaine announced today the Commonwealth’s annual energy tax holiday, Oct 9-12. During this four-day holiday, purchases of products meeting the Energy Star and WaterSense qualifications will be exempt from the Virginia sales tax.

Eligible products must be priced at $2,500 or less for each item, and be purchased for non-commercial home or personal use.

The exempt Energy Star items include dishwashers, clothes washers, refrigerators, air conditioners, ceiling fans, compact fluorescent light bulbs and programmable thermostats that carry the Energy Star designation.

The exempt WaterSense items include bathroom sink faucets, faucet accessories and toilets.

Retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Virginia Department of Taxation.

Governor Kaine also launched the Virginia Energy Efficiency Appliance Rebate program. It’s a new program to encourage the purchase of high-efficiency appliances and products. The program will use $15 million in funds from the American Recovery and Reinvestment Act of 2009, or ARRA, to provide rebates to residential and commercial consumers on certain qualifying appliances and equipment.

Homeowners will be eligible for rebates for 20 percent of the costs of the products, up to $2,000. Residential consumers will be eligible for rebates on air conditioners, heat pumps, furnaces, hot water heaters, washing machines, dishwashers and refrigerators, as well as for insulation and replacement windows.

Commercial consumers will be eligible for 20 percent of their costs up to $4,000. They could receive rebates on heating and cooling equipment, hot water heaters, window replacements, lighting upgrades, high efficiency motors, compressed air and steam system upgrades, as well as insulation and replacement windows.

Rebates will be distributed on a first-come, first-served basis. Participants will be required to complete an application form.

Governor Kaine also highlighted the availability of federal tax credits made available through the ARRA. The Home Energy Efficiency Improvement Tax Credits provide a 30 percent tax credit, up to $1,500 for the purchase and installation of specific products from Jan. 1, 2009 through Dec. 31, 2010. Qualifying products include energy-efficient windows, insulation, doors, roofs and heating and cooling equipment in existing homes.