Energy efficiency touted for sales tax holiday

McALLEN — Replacing a refrigerator manufactured before 1993 with a new ENERGY STAR-qualified refrigerator can save more than $55 a year on your energy bill. People could save even more if they buy it on Memorial Day weekend during the fourth annual ENERGY STAR Sales Tax Holiday, which runs May 28 through 30.

ENERGY STAR-qualified clothes washers use about 30 percent less energy and more than 50 percent less water than regular washers, said Jaclyn Pardini, spokeswoman for Lowe’s Companies Inc.

The home improvement retailer is attracting customers this coming weekend but not planning on putting extra discounts on the qualifying appliances, Pardini said.

According to the EPA, ENERGY STAR clothes washers also will save about $750 over their lifetime on utility bills compared to non-ENERGY STAR-qualified models.

Refrigerators and washers are not the only tax-exempt products.

The tax break applies to ENERGY STAR-rated air conditioners priced at $6,000 or less, refrigerators priced at $2,000 or less, ceiling fans, compact fluorescent light bulbs, clothes washers, dishwashers, dehumidifiers and programmable thermostats, Texas Comptroller Susan Combs said in a written statement.

Products that qualify for the sales tax exemption will display the ENERGY STAR logo on the appliance, the packaging or the Energy Guide label.

“Much of Texas is currently suffering from severe drought, and summertime temperatures have arrived early, reminding us of the need to conserve Texas’ precious resources,” Combs said. “You can save water and energy by purchasing efficient, ENERGY STAR appliances. And during the ENERGY STAR Sales Tax Holiday, you won’t pay state or local sales taxes on your new appliances.”

But you can save three times in some of the products that are tax-deductible. On Dec. 17, President Barack Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The new law extends the tax credits for energy-efficient renovations in 2011, including 10 percent — up to $300 — for an energy-efficient air conditioner. For products placed in service in 2011, you need to file the 2011 IRS Form 5695 and submit it with your 2011 taxes — by April 15, 2012.

On the 1040 form the residential energy tax credit (from Form 5695) is claimed on line 52.

More information about the tax holiday is available at www.texaspowerfulsmart.org. For details on ENERGY STAR products, visit www.energystar.gov.

--

Martha L. Hernández covers health, business and general assignments for The Monitor and El Nuevo Heraldo. She can be reached at (956) 683-4846.