Sales, Use and International Tax Activity Update - November 2009

Virginia Energizes “Green” Sales with Energy Rebates and Tax Holiday

Virginia Gov. Timothy M. Kaine has announced the launch of the Virginia Energy Efficiency Appliance Rebate program and highlighted the state's third annual sales tax holiday on Energy Star and WaterSense qualified products. The governor also highlighted the federal tax credits that are made available through the American Recovery and Reinvestment Act.

The rebate program is a new program to encourage the purchase of high-efficiency appliances and products. Homeowners will be eligible for rebates for 20% of the costs of the products, up to $2,000, and commercial consumers will be eligible for 20% of their costs up to $4,000. Rebates will be distributed on a first come-first served basis. In order to qualify for a rebate, consumers must complete an application form that will be available online from the Department of Mines, Minerals and Energy (DMME). Beginning Tuesday, October 6, 2009, consumers can sign up for an email alert through the DMME's Web site that will tell them when applications for rebates will be accepted.

Residential consumers can claim 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 can claim 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.

Virginia's third annual sales tax holiday on Energy Star and WaterSense qualified products took place October 9 through October 12, 2009. As with last year's holiday, high-efficiency products with Energy Star or WaterSense certification were exempt from sales tax. This includes energy efficient products such as compact fluorescent light bulbs, ceiling fans, clothes washers, dehumidifiers, dishwashers, programmable thermostats, refrigerators and room air conditioners, and water efficient products such as certain toilets and faucets. Only purchases made for personal, non-commercial qualify for exemption. The exemption applies to qualified products costing $2,500 or less. Products purchased online also qualified for the exemption if the seller had the items in-stock for immediate shipment. Sales exempt purchases may also be eligible for the state's new rebate program.

A 30% federal tax credit, up to $1,500, is allowed for the purchase and installation of specific products from January 1, 2009, through December 31, 2010. Energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes qualify for the credit.

The governor's news release can be found on the Virginia.gov Website.

 

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