Legislation: tax incentive for home appliances

Published 5:34 am Friday, February 9, 2007

By Staff
LANSING – State Rep. John Proos, R-St. Joseph, has re-introduced legislation to encourage consumers to purchase energy-efficient appliances by providing a sales and use tax exemption for purchases of certain Energy Star products.
"Purchasing energy efficient appliances is one way in which residents can reduce their energy costs," said Proos. "In today's struggling economy, we need to increase awareness for Energy Star appliances and encourage families to replace their older appliances with more energy-efficient products."
House Bills 4125, introduced by Proos, and 4126, introduced by Rep. Frank Accavitti, D-Eastpointe, encourage Michigan residents to purchase energy-efficient appliances at retail price with no obligation to pay any additional tax.
"As our nation seeks alternative and more efficient forms of energy, companies are following suit and developing products that help residents reduce their energy usage and their costs," Proos said. "By eliminating the sales and use taxes on these items, residents will be able to save money through the purchase and use of these products. This legislation is a win-win, saving consumers money and promoting energy-efficient appliance sales in Michigan, which in turn is good for Michigan businesses."
Home appliances may include a clothes washer, dehumidifier, refrigerator, dishwasher, freezer, room air conditioner, air cleaner, or water cooler.
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy establish standards as to what appliances meet the Energy Star energy efficient standards required to benefit from these incentives.
"Compared to a refrigerator manufactured in 1994, a new Energy Star refrigerator can save up to $25 per year on energy bills," Proos said.
"Replacing a 10-year-old refrigerator with a newer model can save up to $350 over the life of the product."
Refrigerators are the single biggest appliance energy consumers in most households.
Replacing a refrigerator bought in 1990 with a new Energy Star qualified model would save enough energy to light the average household for more than 4 1/2 months.
The bipartisan bill package introduced by Reps. Proos and Accavitti has been referred to the House Energy and Technology Committee for consideration.