Energy Star program being eliminated
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How Trump's Elimination of the Energy Star Program Could Affect Tax Credits
Beyond savings on energy bills, the Energy Star program ties directly into federal tax credits, which many homeowners use to offset costs of upgrading to energy-efficient equipment.
As it stands now, through 2032, federal income tax credits are available to homeowners that allow up to $3,200 annually, to lower the cost of energy efficient home upgrades by up to 30 percent, according to Energy Star's tax credit page.
Through the program, some homeowners can save $2,000 on costs just to upgrade air source heat pumps, heat pump water heaters, and biomass stoves and boilers to eco-friendly options.
Consumers can also claim credits for other Energy Star-certified systems, including insulation, windows and solar energy systems. These credits were expanded under the Inflation Reduction Act 2022.
Paula Glover, president of nonprofit Alliance to Save Energy, told CNN: "Eliminating the Energy Star program would directly contradict this administration's promise to reduce household energy costs."
Glover continued: "For just $32 million a year, Energy Star helps American families save over $40 billion in annual energy costs. That's a return of $350 for every federal dollar invested."
A portion of the Inflation Reduction Act does reference Energy Star requirements in defining eligible improvements. But it's unclear how federal tax credits under the act would change if the program gets cut.
If the program is axed, it's possible that consumers who opted for eco-friendly appliances could be denied tax benefits for which they may have budgeted. If Energy Star is eliminated before the end of the 2025 tax year, homeowners who purchase upgrades in anticipation of tax credits could also face challenges down the line.
https://www.newsweek.com/donald-trump-energy-star-program-appliances-cut-epa-2068778
Our electric utility, ComEd, offers rebates on certain appliances, and they have to be Energy Star rated to qualify. I wonder if the rebate program will go away now....
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My guess is the manufacturers will largely keep it intact knowing that there’s a good probability that it’ll be back in place in 4 years time. Also this standard is used in Canada too, so it keeps their North American lines consistent. And also, the label has a positive association with much of their clientele.
I could, though, imagine a few new bare-bones models not meeting the standard for the super price conscious. Assuming the cost of meeting the standard is material. These might be based on models sold already in parts of the developing world.
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My guess is the manufacturers will largely keep it intact knowing that there’s a good probability that it’ll be back in place in 4 years time. Also this standard is used in Canada too, so it keeps their North American lines consistent. And also, the label has a positive association with much of their clientele.
I could, though, imagine a few new bare-bones models not meeting the standard for the super price conscious. Assuming the cost of meeting the standard is material. These might be based on models sold already in parts of the developing world.
@jon-nyc said in Energy Star program being eliminated:
Also this standard is used in Canada too
Interesting. I didn't know that, and when I did a quick Wiki check, it says the standard is also used in Japan and Switzerland. A couple of other agreements, with European groups, have expired.
