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Cash For Appliances Vs. Cash For Clunkers

Each State Sets Own Rebate Rules

UPDATED: 10:31 am CDT April 7, 2010

In the summer of 2009, Americans cashed in on the government's Cash for Clunkers program, which tried to get cars with low gas mileage off the roads. The program -- whose name was one of the top 10 searched terms on Google and Bing -- resulted in nearly 700,000 older cars being turned in for new ones for a total of $2.85 billion in rebates.

Now that people have upgraded their cars, their next concern could be their appliances. The government is ready to help.

The Cash for Appliances program has been launching on a state-by-state basis this spring to encourage people to buy energy-efficient appliances, including clothes washers, dishwashers and refrigerators. It will receive far less funding from the government -- $300 million, or about one-tenth of the money the Cash for Clunkers program received.

Although there are some similarities between the two programs, the biggest difference is that Cash for Clunkers was a nation-wide program administered by the federal government, while the Cash for Appliance program is run state by state. Each state had to design its own program to receive its share of the funding and is responsible for distributing rebates to its residents.

This means different rules -- including what appliances are eligible -- depending on where you live.

Unlike with the clunkers program, you don't have to drag your appliance into a retail store before buying a new, more efficient appliance. While some states require proof that replaced appliances were recycled, others allow consumers to "self-certify" they have done so or leave it at simply encouraging recycling.

The rebates are also significantly lower than the Cash for Clunkers' flat rate of $4,500. Although some state rebates reach the low thousands for more expensive heating and cooling equipment, rebates in general will range from $25 to $250 for appliances such as refrigerators, freezers, dishwashers and washing machines. Cash for Appliances rebates often can also be paired with existing rebates offered by states or utilities for even more impact.

State Examples

Allowing each state to have its own rules means 50 different start dates and 50 unique sets of eligibility requirements.

To maximize your rebate on a furnace using the New Hampshire appliance rebate program, for example, you'll need to know your Annual Fuel Utilization Efficiency rating. AFUE measures the amount of heat actually delivered to your house compared to the amount of fuel you supply to the furnace.

If the rating on a gas or oil boiler is above 90 percent you can get $1,000 back in your pocket.

Those hoping for cash back from the Arizona appliance rebate program will need to expand their acronym vocabulary and read the rules carefully. The rebate requirements in the Grand Canyon State include many different ratings, such as the MEF, or Modified Energy Factor; EF, or Energy Factor; WF, or Water Factor; and KwH, which stands for kilowatts per hour.

Oregon's appliance rebate program does not apply to everyone. Rebates come with strict income requirements, available only to those making less than 60 percent of the state's median family income level.

But, perhaps the most interesting state requirements are the ones seen in the Alaska appliance rebate program, where your address and your disability status determine the amount of money you get back.

Rural Alaskans with disabilities are eligible for a $500 rebate on refrigerators and freezers, while urban Alaskans with disabilities are only eligible for a $300 rebate.

The non-disabled cannot get an appliance rebate in Alaska.


State-By-State Guidelines

Alabama Idaho Mississippi Oklahoma West Virginia
Alaska Illinois Missouri Oregon Wisconsin
Arizona Indiana Montana Pennsylvania Wyoming
Arkansas Iowa Nebraska Rhode Island
California Kansas Nevada South Carolina U.S. Territories:
Colorado Kentucky New Hampshire South Dakota American Samoa
Connecticut Louisiana New Jersey Tennessee Guam
Delaware Maine New Mexico Texas N. Mariana Islands
District of Columbia Maryland New York Utah Puerto Rico
Florida Massachusetts North Carolina Vermont U.S. Virgin Islands
Georgia Michigan North Dakota Virginia
Hawaii Minnesota Ohio Washington

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