17-A-i

APPENDIX 17-A. REGULATORY IMPACT ANALYSIS: SUPPORTING 

MATERIALS

TABLE OF CONTENTS

17-A.1 INTRODUCTION.........................................................................................17-A-1

17-A.2 ANNUAL INCREASES IN MARKET SHARE BY POLICY.......................17-A-1

17-A.3 INTEGRATED MODEL...............................................................................17-A-3

17-A.4 CONSUMER REBATE POLICY: MARKET PENETRATION CURVES ....17-A-4

17-A.4.1 Introduction ...................................................................................................17-A-4

17-A.4.2 XENERGY Penetration Curves .....................................................................17-A-5

17-A.4.3 XENERGY Rate Function and Curves...........................................................17-A-6

17-A.4.4 Modifications to XENERGY Curves .............................................................17-A-7

17-A.4.5 Interpolation of Penetration Curves................................................................17-A-9

17-A.4.6 Limits to the Interpolation Approach............................................................17-A-12

17-A.5 UTILITY REBATE PROGRAMS...............................................................17-A-13

17-A.6 FEDERAL AND STATE TAX CREDITS...................................................17-A-22

17-A.6.1 Federal Tax Credits for Consumers..............................................................17-A-22

17-A.6.2 Federal Tax Credits for Manufacturers.........................................................17-A-23

17-A.6.3 State Tax Credits .........................................................................................17-A-24

LIST OF TABLES

Table 17-A.2.1 Annual Increases in Market Shares Attributable to Rebate and Tax 

Credit Policies for Residential Clothes Washers....................................17-A-2

Table 17-A.2.2 Annual Increases in Market Shares Attributable to Voluntary Energy 

Efficiency Targets, Early Replacement, and Bulk Government 

Purchases Policies for Residential Clothes Washers...............................17-A-3

Table 17-A.4.1 Parameter Values for Reference Curves.................................................17-A-8

Table 17-A.4.2 Correspondence Between Discrete and Continuous Values of Market 

Barrier Levels......................................................................................17-A-10

Table 17-A.4.3 Coefficients of Continuous-Value Functions of max, mid, fit, and r.....17-A-11

Table 17-A.5.1 Consumer Rebates for Residential Clothes Washers............................17-A-14

LIST OF FIGURES

Figure 17-A.4.1 S-Curves Showing Effects of External and Internal Sources on 

Adoption of New Technologies.............................................................17-A-5

Figure 17-A.4.2 Market Implementation Curves for Five Market Barriers Reference 

Levels ...................................................................................................17-A-7

Figure 17-A.4.3 Discrete-Value Functions of Parameters that Drive the Shape of an 

Implementation Curve ...........................................................................17-A-9

Figure 17-A.4.4 Continuous-Value Functions of Parameters that Drive the Shape of an 

Implementation Curve .........................................................................17-A-12
17-A-1

APPENDIX 17-A. REGULATORY IMPACT ANALYSIS: SUPPORTING MATERIALS

17-A.1 INTRODUCTION

The U.S. Department of Energy’s regulatory impact analysis (RIA) evaluated the effects 

and effectiveness of various policies that might be established in place of mandatory standards.

DOE estimated increases in market shares of residential clothes washers meeting target 

efficiency levels for each alternative policy. The non-regulatory alternatives described in chapter 

17 are:

• No new regulatory action,

• Consumer rebates,

• Consumer tax credits,

• Manufacturer tax credits,

• Voluntary energy efficiency targets,

• Early replacement, and

• Bulk government purchases.

This appendix presents details on the following topics related to performing the RIA.

• The integrated model based on the national impacts analysis (NIA) model.

• XENERGY penetration curves used to analyze consumer rebates, including:

o background material,

o DOE’s adjustment of the curves for this analysis, and

o DOE’s method for interpolating the curves.

• Projections of increases in annual market share for the alternative policies.

• Rebates offered for the considered products.

• Background on Federal and State tax credits for appliances.

17-A.2 ANNUAL INCREASES IN MARKET SHARE BY POLICY

Table 17-A.2.1 shows the annual increases in market shares attributable to the consumer 

rebate, consumer tax credit, and manufacturer tax credit policies for residential clothes washers 

meeting target efficiency levels. DOE used these increases in market share as inputs to the 

integrated (NIA-RIA) spreadsheet model.
17-A-2

Table 17-A.2.1 Annual Increases in Market Shares Attributable to Rebate and Tax 

Credit Policies for Residential Clothes Washers

Year

Consumer

Rebates

Consumer

Tax Credits

Manufacturer

Tax Credits

FrontLoading

%

TopLoading

%

FrontLoading

%

TopLoading 

%

FrontLoading

%

TopLoading

%

2015 5 20 3 12 2 6

2016 5 20 3 12 2 6

2017 5 20 3 12 2 6

2018 5 20 3 12 2 6

2019 5 20 3 12 2 6

2020 5 20 3 12 2 6

2021 5 20 3 12 2 6

2022 5 20 3 12 2 6

2023 5 20 3 12 2 6

2024 5 20 3 12 2 6

2025 5 20 3 12 2 6

2026 5 20 3 12 2 6

2027 5 20 3 12 2 6

2028 5 20 3 12 2 6

2029 5 20 3 12 2 6

2030 5 20 3 12 2 6

2031 5 20 3 12 2 6

2032 5 20 3 12 2 6

2033 5 20 3 12 2 6

2034 5 20 3 12 2 6

2035 5 20 3 12 2 6

2036 5 20 3 12 2 6

2037 5 20 3 12 2 6

2038 5 20 3 12 2 6

2039 5 20 3 12 2 6

2040 5 20 3 12 2 6

2041 5 20 3 12 2 6

2042 5 20 3 12 2 6

2043 5 20 3 12 2 6

2044 5 20 3 12 2 6

Table 17-A.2.2 shows the annual increases in market shares attributable to policies 

involving voluntary efficiency targets, early replacements, and bulk government purchases for 

residential clothes washers meeting target efficiency levels. DOE used these increases in market

share as inputs to the NIA-RIA spreadsheet model.
17-A-3

Table 17-A.2.2 Annual Increases in Market Shares Attributable to Voluntary Energy 

Efficiency Targets, Early Replacement, and Bulk Government Purchases 

Policies for Residential Clothes Washers

Year

Voluntary Energy 

Efficiency Targets Early Replacement Bulk Government 

Purchases

FrontLoading

%

TopLoading 

%

FrontLoading

%

TopLoading 

%

FrontLoading

%

TopLoading

%

2015 1 1 0.0 0.0

2016 5 5 0.0 0.1

2017 8 8 0.0 0.1

2018 9 9 0.0 0.2

2019 10 10 0.0 0.2

2020 10 10 0.0 0.2

2021 10 10 0.0 0.3

2022 10 10 0.0 0.3

2023 10 10 0.0 0.3

2024 10 10 0.0 0.4

2025 10 10 0.0 0.4

2026 10 10 0.0 0.4

2027 10 10 0.0 0.4

2028 10 10 0.0 0.4

2029 10 10 0.0 0.4

2030 10 10 0.0 0.4

2031 10 10 0.0 0.4

2032 11 11 0.0 0.4

2033 11 11 0.0 0.4

2034 11 11 0.0 0.4

2035 11 11 0.0 0.4

2036 11 11 0.0 0.4

2037 12 12 0.0 0.4

2038 12 12 0.0 0.4

2039 12 12 0.0 0.4

2040 12 12 0.0 0.4

2041 12 12 0.0 0.4

2042 13 13 0.0 0.4

2043 13 13 0.0 0.4

2044 13 13 0.0 0.4

17-A.3 INTEGRATED MODEL

For this RIA, DOE developed an integrated model that built on the NIA model described 

in chapter 10 and documented in appendix 10-A.The resulting NIA-RIA model, which features

both the NIA analysis inputs and results and the RIA inputs, has the capability to generate results 

for each RIA policy. DOE used a separate module to produce summaries of inputs for the rebate 

policy, generate their penetration curves (discussed in section 17-A.4 ), report data on increases 
17-A-4

in shipments and market shares by product class, and produce the national energy savings and 

net present values reported in chapter 17, section 17.4. This module generated tables of increases 

in market share for the policies introduced previously in this appendix.

17-A.4 CONSUMER REBATE POLICY: MARKET PENETRATION CURVES

This section first discusses the theoretical basis for the market penetration curves DOE 

used to analyze the consumer rebates policy. Next it describes the adjustments it made to the 

maximum penetration rates. It then presents the method DOE developed to create interpolated 

penetration curves for each product class and efficiency level in the analysis. The resulting 

curves for the two residential clothes washer product classes are given in chapter 17, section 

17.3.2.2.

17-A.4.1 Introduction

Extensive economic literature describes the diffusion of new products as technologies 

evolve. Some research focuses on developing analytical models of diffusion patterns applicable 

to individual consumers or to technologies from competing firms.1, 2, 3 One study records 

researchers’ attempts to investigate the factors that drive diffusion processes. 4 Because a new 

product generally has its own distinct characteristics, few studies have been able to develop a 

universally applicable model. Some key findings, however, generally are accepted in academia 

and industry. 

One accepted finding is that, regardless of their economic benefits and technological 

merits, new technologies are unlikely to be adopted by all potential users. Rather, a ceiling 

usually must be placed on the adoption rate. A second conclusion is that not all adopters 

purchase new products at the same time: some act quickly after a new product is introduced; 

others wait for the product to mature. Third, diffusion processes can be characterized 

approximately by asymmetric S-curves that depict three stages of diffusion: starting, 

accelerating, and decreasing (as the adoption ceiling is approached).

A so-called epidemic model of diffusion, used widely in marketing and social studies, 

assumes that (1) all consumers place identical value on the benefits of a new product, and (2) the 

cost of a new product is constant or declines monotonically over time. What induces a consumer 

to purchase a new product is information about the availability and benefits of the product. In 

other words, information diffusion drives consumers’ adoption of a new product.2 In 2002 

XENERGY, Inc.,a developed a re-parameterized, mixed-source information diffusion model to 

estimate market impacts induced by financial incentives for purchasing energy efficient 

appliances. 5

3

The mixed-source model incorporates information diffusion from both internal 

sources (spread by word of mouth from early adopters to prospective adopters) and external 

sources (the so-called announcement effect produced by government agencies, institutions, or 

commercial advertising). The model incorporates both sources by combining a logistic function 

with an exponential function. , 4

 

a XENERGY is now owned by KEMA, Inc. (www.kema.com).
17-A-5

The relative degree of influence from the internal and external sources determines the 

general shape of the diffusion curve for a specific product.3, 4 If a product’s adoption is 

influenced primarily by external sources of information (the announcement effect), for instance, 

a high rate of diffusion occurs initially as external sources provide immediate information 

exposure to a significant number of prospective adopters. In contrast, internal sources (such as a 

network of prospective adopters) are limited in size and reach, producing a more gradual 

exposure to prospective adopters. Graphically speaking, information diffusion dominated by 

external sources is represented by a concave curve (the exponential curve in Figure 17-A.4.1). If 

adoption of a new product is influenced more strongly by internal sources, the number of 

adopters increases gradually, forming a convex curve (the logistic curve in Figure 17-A.4.1).

Figure 17-A.4.1 S-Curves Showing Effects of External and Internal Sources on 

Adoption of New Technologies

17-A.4.2 XENERGY Penetration Curves

The XENERGY penetration (implementation) curves follow a functional form to 

estimate the rate of market implementation produced by measures such as consumer rebates.

b

 

b The RIA chapter refers to these curves as penetration curves. When referring to the original source, this section 

uses the term implementation curves.
17-A-6

The 2002 XENERGY report presents five implementation curves that differ according to the 

level of market barriers to technology penetration.5 The curves reflect five reference levels of 

market barriers: No Barriers, Low Barriers, Moderate Barriers, High Barriers, and Extremely 

High Barriers. DOE has used similar curves in appliance standards rulemakings to estimate

increases in market share in response to rebate programs.c The curves provide a framework for 

evaluating technology penetration, yet require matching the studied market to the curve that best 

represents it. 

17-A.4.3 XENERGY Rate Function and Curves

The XENERGY curves employ the following functional form to estimate the percentage 

of the informed marketd that will accept each energy efficiency measure based on the consumer’s

benefit/cost ratio: 

imp(bc) = max

�1 + e

−ln�bc

4 �

� ∙ (1 + e−fit∙ln(mid∙bc) )

[1]

Where:

imp = implementation rate,

bc = benefit/cost ratio,

max = maximum annual acceptance rate for the technology,

mid = inflection point of the curve, and

fit = parameter that determines the general shape (slope) of the curve.

XENERGY uses Eq. [1] to generate its five primary (reference) curves. The curves, 

generated using distinct values of the parameters max, mid, fit, and r, reflect the five levels of 

market barriers to efficiency measures. Figure 17-A.4.2 presents the five reference curves. These

initial, theoretical results are calibrated to actual implementation results associated with the first 

year of major utility energy efficiency programs. 

 

c DOE has also used this method to estimate market share increases resulting from consumer tax credit and 

manufacturer tax credit programs, because the effects of tax credits on markets can be considered proportional to the 

effects of rebates. 

d The informed market refers to that part of the market aware and informed about the energy efficiency measure.
17-A-7

Figure 17-A.4.2 Market Implementation Curves for Five Market Barriers 

Reference Levels

17-A.4.4 Modifications to XENERGY Curves

In consultation with the primary authors of the 2002 XENERGY study, who continued to 

conduct similar studies, DOE made some adjustments to XENERGY’s original implementation 

curves. 6 Experiences with utility programs since the 2002 XENERGY study indicate that 

incentive programs have difficulty achieving penetration rates as high as 80 percent. Consumer 

response is limited by utility issues and other non-economic factors. DOE therefore adjusted the 

maximum penetration parameters for some of the curves from 80 percent to the following levels.

Moderate barriers: 70%

High barriers: 60%

Extremely high barriers: 50%

The maximum penetration rates for the low barriers and no barriers curves (the latter 

used only when a product has a very high base-case-market share) remained 80 percent and 100 

percent, respectively. For the interpolated penetration curves (discussed below), DOE set the no 

barriers and extremely high barriers curves as the upper and lower bounds, respectively, for 

market penetration. It set another constraint such that the policy-case market share cannot exceed

100 percent, as might occur for products having high base-case market shares of the target-level 

technology.

No Barriers

Low Barriers

Moderate 

Barriers

High Barriers

Extremely High 

Barriers

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0 20 40 60 80 100

implementation rate

benefit-cost ratio
17-A-8

In recent rulemakings for efficiency standards, DOE has adopted a slightly different 

functional form of Eq. [1], whereby the constant value 1/4 is replaced by a parameter r. By 

introducing this parameter and rewriting Eq. [1] without the exponential and logarithmic 

operators, the following equation can be used to evaluate the market implementation rate of 

rebate programs.

imp(bc) = max

(1 + r ∙ bc) ∙ (1 + (mid ∙ bc)−fit )

[2]

The reference curves build on the following functional form:

imp(bd, bc) = maxd(bd)

(1 + rd(bd) ∙ bc) ∙ (1 + (midd(bd) ∙ bc)−fitd(bd) ) [3]

Where:

 bd = [barrier type],

and maxd(bd), midd(bd), fitd(bd), and rd(bd) are as shown in Table 17-A.4.1. The four 

parameters are also presented as discrete-value functions in Figure 17-A.4.3.

Table 17-A.4.1 Parameter Values for Reference Curves

Parameter

Market Barriers Level

No 

Barriers

Low 

Barriers

Moderate 

Barriers

High 

Barriers

Extremely 

High Barriers

maxd 1.0 0.8 0.7e 0.6 0.5

midd 10 2.0 0.3 0.1 0.04

fitd 1 1.7 1.7 1.7 1.7

rd 1 0.5 0.25 0.25 0.25

 

e DOE adopted these parameters for the RIA analyses for refrigeration products and furnaces after consultation with 

the authors of the implementation curves. For the RIAs for the earlier rulemaking for cooking products and 

commercial clothes washers, the max value adopted for the moderate barriers and high barriers levels was 0.5.

RIAs developed during prior rulemakings for furnaces and boilers, commercial unitary air conditioners, and heat 

pumps, and for distribution transformers used a max value of 0.8 for all but the no barriers curve, based on the 

original values from XENERGY’s 2002 report. 
17-A-9

Figure 17-A.4.3 Discrete-Value Functions of Parameters that Drive the Shape of 

an Implementation Curve 

To estimate the barrier level of a given market, DOE previously sought the reference 

curve that most closely represented the pair (base-case market share, benefit/cost ratio) of the 

technology corresponding to the mandatory standard’s efficiency level. It then used that curve to 

estimate the effect of a rebate program on the technology’s market penetration. For that

estimation, DOE calculated the increase in market share that an increase in the benefit/cost ratio 

—driven by a rebate program—would produce. It then assumed that the relative increase in 

market share calculated from the reference curve was a proxy for the effects of a rebate program 

on the studied market.

17-A.4.5 Interpolation of Penetration Curves

When a market is matched to the curve that best approximates it, some inaccuracy can be 

introduced into the analysis, especially if the actual benefit/cost ratio does not lie close to one of 

the reference curves. This section presents an alternative approach that can estimate market 

implementation rates more accurately by performing interpolations of the reference curves. The 

interpolation provides intermediate, continuous values for the four parameters that drive the 

market implementation curves (max, mid, fit, and r). These intermediate values are obtained after 

linear interpolation of their corresponding reference values. 

To facilitate the interpolation, the four discrete-value functions listed in Table 17-A.4.1

and shown in Figure 17-A.4.3 must be transformed into continuous functions, which are capable 

of associating each of the four parameters to a real number denoting the market barrier level 

(bc∈R). A numeric, continuous scale for the market barriers level is applied, ranging from 0 to 5 

0.0

0.2

0.4

0.6

0.8

1.0

1.2

No Low Moderate High X-High

Max

0.0

2.0

4.0

6.0

8.0

10.0

12.0

No Low Moderate High X-High

Mid

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

No Low Moderate High X-High

Fit

0.0

0.2

0.4

0.6

0.8

1.0

1.2

No Low Moderate High X-High

r
17-A-10

(bc∈[0,5]). The correspondence between the discrete values of market barrier levels and bc are 

shown in Table 17-A.4.2.

Table 17-A.4.2 Correspondence Between Discrete and Continuous Values of Market 

Barrier Levels

Market Barriers Level

No 

Barriers

Low 

Barriers

Moderate 

Barriers

High 

Barriers

Extremely 

High 

Barriers

bc 0.0 1.0 2.5 4.0 5.0

Based on the continuous-value market barriers level, the parameters max, mid, fit, and r

are interpolated using the following functions:

maxc(bc) = ∝max (bc) ∙ bc + βmax(bc) [4]

midc(bc) = ∝mid (bc) ∙ bc + βmid(bc) [5]

fitc (bc) = ∝fit (bc) ∙ bc + βfit(bc) [6]

rc(bc) = ∝r (bc) ∙ bc + βr(bc) [7]

For which ∝x (bc) and βx(bc) are shown in Table 17-A.4.3 for given intervals of market 

barrier levels.
17-A-11

Table 17-A.4.3 Coefficients of Continuous-Value Functions of max, mid, fit, and r

Market Barriers Levels

No–Low 

Barriers

Low–

Moderate 

Barriers

Moderate–

High 

Barriers

High–

Extremely High 

Barriers

b∈[0, 1] b∈[1, 2.5] b∈[2.5, 4] b∈[4, 5]

Max

∝max (bc) -0.200 -0.075 -0.075 -0.075

βmax(bc) 1.000 0.875 0.875 0.875

Mid

∝mid (bc) -8.000 -1.133 -0.133 -0.060

βmid(bc) 10.000 3.133 0.633 0.340

Fit

∝fit (bc ) 0.700 0.000 0.000 0.000

βfit(bc) 1.000 1.700 1.700 1.700

R

∝r (bc) -0.500 -0.167 0.000 0.000

βr(bc) 1.000 0.667 0.250 0.250

The continuous-value functions defined for max, mid, fit, and r, as expressed by Eqs. [4]

through [7], are substituted in Eq. [3], leading to the following functional form for the market 

implementation rate of rebate programs.

imp(bc, bc) = maxc(bc)

(1 + rc(bc) ∙ bc) ∙ (1 + (midc(bc) ∙ bc)−fitc(bc) ) [8]

Figure 17-A.4.4 presents the four continuous-value functions.
17-A-12

Figure 17-A.4.4 Continuous-Value Functions of Parameters that Drive the Shape 

of an Implementation Curve 

Hence, estimating the market effects of a rebate program relies on finding the 

interpolated implementation curve that best represents the studied market. In other words, it 

involves finding bc such that the pair (imp(bc,bc), bc) equals the pair (base case market share, 

benefit/cost ratio) of the technology that corresponds to the standard’s efficiency level. After the 

appropriate value of bc is found (e.g., bc = bc

∗ ), the market penetration of the technology under a 

rebate program can be calculated by the following equation.

imp(bc

∗, bc∗) = maxc(bc

∗)

(1 + rc(bc

∗) ∙ bc∗) ∙ (1 + (midc(bc∗) ∙ bc∗)−fitc(bc

∗) ) [9]

Where:

bc

∗ = market barriers level corresponding to the studied market, and

bc∗ = benefit/cost ratio with rebate.

17-A.4.6 Limits to the Interpolation Approach

The approach described above increases the accuracy of the estimated market 

implementation rate attributable to a rebate program. Consequently, it improves the analysis of 

the market effects of rebate programs. Although it is feasible to develop interpolated 

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0 1 2 3 4 5

Max

0

2

4

6

8

10

12

0 1 2 3 4 5

Mid

1.0

1.2

1.4

1.6

1.8

2.0

0 1 2 3 4 5

Fit

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0 1 2 3 4 5

r
17-A-13

implementation curves between the reference ones, there is no empirical support to extrapolate 

them beyond the No Barriers and Extremely High Barriers curves. In fact, the theoretical 

boundaries for the market barriers level would be as follows.

(a) Zero Barriers (b0): Assuming a rational consumer, a tiny increase in the benefit/cost ratio 

of a technology having a ratio greater than 1 would be sufficient to have the technology 

widely adopted.f This effect would result in the following implementation rate function:

imp(b0, bc) = �

0, bc < 1

1, bc > 1

(b) Infinite Barriers (b∞): In this case, even an extremely high benefit/cost ratio would be 

insufficient to cause the market to adopt a technology. This effect would result in the 

following implementation rate function: 

imp(b∞, bc) = 0,∀bc

Notwithstanding the existence of such theoretical boundaries, the analysis of market 

implementation rates where the base-case market share is either higher than the market share in 

the No Barriers curve (for the corresponding benefit/cost ratio), or lower than in the Extremely 

High Barriers curve (for the corresponding benefit/cost ratio) should rely on the No Barriers or 

the Extremely High Barriers curves to estimate a relative market increase due to the rebate 

program.

17-A.5 UTILITY REBATE PROGRAMS 

This section presents data on rebate programs for residential clothes washers offered by 

agencies and utilities nationwide. DOE found 119 organizations, comprising electric utilities and 

municipal and regional agencies that have rebate programs for residential clothes washers. The 

organizations offer 163 rebates for models that meet various efficiency criteria. Table 17-A.5.1 

provides the organizations’ names, States, rebate amounts, required modified energy factor 

(MEF) and water factor (WF) of qualifying units, and program websites. If there is more than 

one entry for an organization, that organization offers different rebate amounts depending on

efficiency level. The average rebate amounts for clothes washers meeting an IMEF of 1.57 and

1.84 (the efficiency level for top-loading and front-loading washers in the proposed standards), is 

given in 2010$ at the end of the table.

g

 

f When the benefit/cost ratio is 1, the participant is indifferent to adopting the technology, and the implementation 

rate would be undetermined.

It is a simple average of the individual amounts for units

meeting the efficiency levels, rather than being population-weighted. 

g DOE gathered rebate data for the two product classes during 2010. In the analysis, which assumes 2010$, it used 

the same rebate values, in the absence of a conversion factor for 2011$.
17-A-14

Table 17-A.5.1 Consumer Rebates for Residential Clothes Washers

Utility or Agency State

Rebate 

$ MEF WF Website

Glendale Water and Power CA 60 1.42

http://www.glendalewaterandpower.com/save_money/residential/sh_energy_saving_r

ebates.aspx

Glendale Water and Power CA 80 1.42

http://www.glendalewaterandpower.com/save_money/residential/sh_energy_saving_r

ebates.aspx

Marblehead Light Department MA 50 1.42 http://www.marbleheadelectric.com/9-6_Rebate_guide_for_MMLD.pdf

Kootenai Electric Cooperative ID 70 1.72 http://www.kec.com/rebates.php

Kootenai Electric Cooperative ID 25 1.72 http://www.kec.com/rebates.php

Rocky Mountain Power ID 50 1.72 http://www.homeenergysavings.net/Downloads/ID_ApplianceForm2010.pdf

Central Lincoln People's Utility 

District OR 70 1.72

http://www.clpud.org/pdf/Rebate%20Forms/CLPUD%20Applnc%20Rebate%20form

%2008-10.pdf

Consumers Power, Inc OR 60 1.72 http://www.cpi.coop/rebates/appliance.php

Forest Grove L&P OR 70 1.72

http://www.forestgroveor.gov/images/stories/services/lightandpower/pdf/mar2010appliancerebateform.pdf

Forest Grove L&P OR 25 1.72

http://www.forestgroveor.gov/images/stories/services/lightandpower/pdf/mar2010appliancerebateform.pdf

McMinnville Water and Light OR 70 1.72 8 http://www.mc-power.com/rebates.aspx

McMinnville Water and Light OR 25 1.72 8 http://www.mc-power.com/rebates.aspx

Midstate Electric Cooperative OR 70 1.72 8 http://www.midstateelectric.coop/Washer%20Rebate.pdf

Monmouth Power & Light OR 70 1.72

http://www.ci.monmouth.or.us/vertical/Sites/%7BCE78EAE1-6CA4-4610-BDB0-

A9B3B0A8BB71%7D/uploads/%7BF66F3203-CD45-406C-89BFADE93D1D975D%7D.PDF

City of St.George UT 25 1.72

http://www.sgcity.org/energyservices/ES%20Appliance%20Rebate%20Application.p

df

Clack Public Utilities WA 50 1.72 http://www.clarkpublicutilities.com/yourhome/conservation/rebates

Cowlitz County PUD WA 70 1.72 http://www.cowlitzpud.org/pdf/RebateBrochureRevised10-6-08.pdf

Pacific Power WA 50 1.72 http://www.homeenergysavings.net/Washington/appliances/clotheswashers.html

Richland Energy Services WA 25 1.72 http://www.ci.richland.wa.us/index.aspx?NID=178

SRP AZ 50 1.8 7.5 http://www.srpnet.com/energy/powerwise/appliancerebate.aspx

Black Hills Energy CO 100 1.8 7.5

http://www.blackhillsenergy.com/services/programs/builders-heateffco.php#appliance

Black Hills Energy IA 100 1.8 7.5 http://www.blackhillsenergy.com/services/programs/homes-heateff-ia.php#appliance

Marblehead Light Department MA 100 1.8 http://www.marbleheadelectric.com/9-6_Rebate_guide_for_MMLD.pdf
17-A-15

Utility or Agency State

Rebate 

$ MEF WF Website

Southwest Gas Corporation NV 50 1.8 <7.5 http://www.conservationrebates.com/programs/swg/SWG_NV_Res.aspx

Emerald P.U.D. OR 70 1.8 <7.5 http://www.epud.org/documents/ApplianceRebate_000.pdf

Questar Gas UT 50 1.8 http://www.thermwise.com/home/ApplianceRebates.html

Benton PUD WA 70 1.8

http://www.bentonpud.org/pdf/CRC/REEP/October%201,%202009/Appliance%20Re

bate%20Application%209-1-09.pdf

Benton PUD WA 25 1.8

http://www.bentonpud.org/pdf/CRC/REEP/October%201,%202009/Appliance%20Re

bate%20Application%209-1-09.pdf

Franklin PUD WA 70 1.8 http://www.franklinpud.com/pdfs/REBATE_PROGRAM_V_10.2.pdf

Franklin PUD WA 25 1.8 http://www.franklinpud.com/pdfs/REBATE_PROGRAM_V_10.2.pdf

Waverly Light & Power IA 150 1.84 http://wlp.waverlyia.com/appliance_programs.asp

SRP AZ 75 2 6 http://www.srpnet.com/energy/powerwise/appliancerebate.aspx

Burbank Water & Power CA 100 2 6

http://www.burbankwaterandpower.com/download/Home-Rewards-Rebate-FormWeb.pdf

Burbank Water & Power CA 75 2 6

http://www.burbankwaterandpower.com/download/Home-Rewards-Rebate-FormWeb.pdf

Hercules Municipal Utility CA 75 2 6 http://www.ci.hercules.ca.us/index.aspx?page=157

Lassen Municipal Utility 

District CA 50 2 6 http://www.lmud.org/documents/appliancerebate.pdf

Lodi Electric Utility CA 50 2 6 http://lodielectric.com/residential/rebateoffer.asp?id=2

Modesto Irrigation District CA 35 2 6 http://www.mid.org/rebates/pkts/homeAppliance.pdf

Plumas-Sierra REC CA 50 2 6 http://www.psrec.coop/energy_rebates.php?sec=enersol&pag=enerreb

Redding Electric CA 25 2 6 http://www.reupower.com/energysvc/documents/2010/Jan10EnergyStar.pdf

Sacramento Municipal Utility 

District (SMUD) CA 35 2 6 http://www.smud.org/en/rebates/Documents/Clothes-Washer-Fact-Sheet.pdf

SoCalGas CA 35 2 6 http://www.socalgas.com/rebates/residential/furnace/

Truckee Donner Public Utility 

District CA 100 2 6 http://www.tdpud.org/pdf/Rebate%20program%20pamphlet,5-09.pdf

Turlock Irrigation District CA 35 2 6 http://www.tid.org/MyHome/Rebates/EnergyEfficiencyRebates/index.htm

City of Lompoc Utilities CA 120 2 6 http://www.cityoflompoc.com/utilities/conservation/

Riverside Public Utilities CA 75 2 4 http://www.riversideca.gov/utilities/resi-washerrebate.asp

Delta-Montrose Electric 

Association CO 40 2 6 http://www.dmea.com/Portals/0/Applianceformsrebate.pdf

Fort Collins Utilities CO 50 2 6 http://www.fcgov.com/conservation/res-frige.php
17-A-16

Utility or Agency State

Rebate 

$ MEF WF Website

Gunnison County Electric CO 20 2 6 http://www.gcea.coop/EE/rebate_program.cfm

Holy Cross Energy CO 75 2 6 http://www.holycross.com/green-programs/appliance-rebates

Holy Cross Energy CO 25 2 6 http://www.holycross.com/green-programs/appliance-rebates

Longmont Power & 

Communications CO 50 2 6 http://www.ci.longmont.co.us/lpc/pdfs/rebate_appl.pdf

Morgan County REA CO 50 2 6 http://www.mcrea.org/Services/Electric_Appliances.html

United Power CO 40 2 6 http://www.unitedpower.com/ApplianceRebate.aspx#recycle

Groton Utilities CT 60 2 6 http://www.grotonutilities.com/files/conservation_forms/Appliance_Rebate.pdf

Norwich Public Utilities CT 60 2 6

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=CT54F&re=0&ee

=1

City of Tallahassee Utilities FL 100 2 6 http://www.talgov.com/you/energy/energy_programs.cfm#appl

Lake Worth Utilities FL 100 2 6

http://www.lakeworth.org/vertical/Sites/%7B5E6FE119-0228-4C9B-B2DB067168049C16%7D/uploads/%7B5348F2F5-5F25-464C-873C87948A60D480%7D.PDF

Access Energy Coop IA 100 2 6 http://www.accessenergycoop.com/Content/Residential/Rebates.aspx

Ames Electric Department IA 50 2 6

http://www.cityofames.org/SmartEnergy/Documents/EfficientApplianceClaimForm

%207.9.09.pdf

Cedar Falls Utilities IA 100 2 6 http://www.cfu.net/save-energy/residential-rebates.aspx

Interstate Power and Light IA 100 2 6

http://alliantenergy.com/wcm/groups/wcm_internet/@int/documents/contentpage/022

811.pdf

Linn County REC IA 25 2 6

http://www.linncountyrec.com/cgiscript/csarticles/uploads/334/Energy%20Star%20Appliances%20LCREC.pdf

MidAmerican Energy IA 50 2 6 http://www.midamericanenergy.com/ee/include/pdf/ia_res_equip_brochure.pdf

Idaho Falls Power ID 50 2 6

http://www.idahofallsidaho.gov/city/city-departments/idaho-falls-power/services-foryour-home/appliances.html

Idaho Power ID 50 2 6

http://www.idahopower.com/EnergyEfficiency/Residential/Programs/HomeProducts/

default.cfm

Rocky Mountain Power ID 100 2 http://www.homeenergysavings.net/Downloads/ID_ApplianceForm2010.pdf

Munihelps MA 50 2 6 http://www.munihelps.org/2010%20rebate%20forms/MailinformAshburnham.pdf

Belmont Municipal Light 

Department MA 100 2 6

http://www.town.belmont.ma.us/public_documents/BelmontMA_LightNews/Announ

cements/2010%20Appliance%20Rebate%20Program%20&%20Form%20Brochure.p

df

Belmont Municipal Light 

Department MA 50 2 6

http://www.town.belmont.ma.us/public_documents/BelmontMA_LightNews/Announ

cements/2010%20Appliance%20Rebate%20Program%20&%20Form%20Brochure.p
17-A-17

Utility or Agency State

Rebate 

$ MEF WF Website

df

Concord Municipal Light Plant MA 50 2 6 http://www.concordma.gov/Pages/ConcordMA_LightPlant/appliance

Mansfield Municipal Electric MA 100 2 6 http://www.mansfieldelectric.com/consumerforms/Appliance-Rebate-App.pdf

Reading Municipal Light MA 50 2 6 http://www.rmld.com/Pages/rmldma_residential/rebate.pdf

Shrewsbury Electric & Cable 

Operations MA 50 2 6 http://www.shrewsbury-ma.gov/egov/docs/1263402562_742065.pdf

Wakefield Municipal Gas & 

Light Department MA 50 2 6

http://www.wakefield.ma.us/Public_Documents/WakefieldMA_MGLD/WMGLDRe

bateForm.pdf

Allegheny Power MD 75 2 http://www.nxtbook.com/nxtbooks/garrisonhughes/empowermaryland2010/#/4

Baltimore Gas & Electric 

Company MD 50 2 6

http://conservation.bgesmartenergy.com/residential/lighting-appliances/appliancerebates

Efficiency United MI 50 2 6

http://efficiencyunited.com/resources/Energy_Star_Incentive_Request_Form_Alpena.

pdf

Consumers Energy MI 25 2 6 http://www.consumersenergy.com/eeprograms/Landing.aspx?ID=802

Consumers Energy MI 50 2 6 http://www.consumersenergy.com/eeprograms/Landing.aspx?ID=802

DTE Energy MI 25 2 6

http://www.dteenergy.com/residentialCustomers/saveEnergy/rebates/energyStar/resE

nergyStar.html

DTE Energy MI 50 2 6

http://www.dteenergy.com/residentialCustomers/saveEnergy/rebates/energyStar/resE

nergyStar.html

Alexandria Light and Power MN 50 2 6

http://www.alputilities.com/forms/Energy%20Star%20Rebate%20Brochure%202010.

pdf

Alexandria Light and Power MN 75 2 6

http://www.alputilities.com/forms/Energy%20Star%20Rebate%20Brochure%202010.

pdf

Anoka Municipal Utility MN 25 2 6

http://www.ci.anoka.mn.us/index.asp?Type=B_BASIC&SEC={03DDAD7B-EC66-

4214-97D8-EB42DA396059}

Southern Minnesota Municipal 

Power Agency MN 50 2 6

http://www.smmpa.org/upload/Res%202010%20Rebate%20Program%20Fact%20Sh

eet-BP.pdf

City of North St. Paul Electric 

Utility MN 50 2 6

http://www.ci.north-saintpaul.mn.us/index.asp?Type=B_BASIC&SEC={F5C1E5FE-1ADD-49AF-ACD8-

59C3FB4192FF}

Crow Wing Power MN 50 2 6 http://www.cwpower.com/heatingcoolingoptions.shtml

Minnesota Energy Resources MN 35 2 6 http://www.minnesotaenergyresources.com/home/rebates.aspx#high_efficiency

Minnesota Energy Resources MN 50 2 6 http://www.minnesotaenergyresources.com/home/rebates.aspx#high_efficiency
17-A-18

Utility or Agency State

Rebate 

$ MEF WF Website

Minnesota Power MN 40 2 6

http://www.mnpower.com/powerofone/one_home/energystar/special_offers/index.ph

p

Shakopee Public Utilities MN 35 2 6 http://www.shakopeeutilities.com/Residential_Rebate_Packet.pdf

Stearns Electric MN 25 2 6 https://www.stearnselectric.org/energystarres.htm

Citizen's Electric Corporation MO 50 2 6 http://www.citizenselectriccorp.com/documents/REBATEFORM2010.pdf

Co-Mo Electric Cooperative MO 100 2 6 http://www.co-mo.coop/documents/HomeApplianceRebateApp_000.pdf

Intercounty Electric 

Cooperative MO 100 2 6 http://www.ieca.coop/PROGRAMS/REBATES/tabid/116/Default.aspx

White River Valley Electric 

Cooperative MO 100 2 6 http://whiteriver.org/RebateProgram.html

Flathead Electric MT 70 2 6 http://www.flatheadelectric.com/energy/Rebates.html

Flathead Electric MT 25 2 6 http://www.flatheadelectric.com/energy/Rebates.html

Yellowstone Valley Electric 

Cooperative MT 50 2 6 http://www.yvec.com/UserFiles/File/Energy%20Star%20Rebate.pdf

Four-County EMC NC 150 2 6 http://www.fourcty.org/news.php?id=39&p=7

South River EMC NC 25 2 6 http://www.sremc.com/ESRebates.aspx

New Hampshire Electric Coop NH 50 2 6 http://www.nhec.com/residential_energystar_appliances.php

Northern Utilities NH 50 2 6 http://services.unitil.com/nh/energy_efficiency.asp?t=204

Public Service of New 

Hampshire NH 50 2 6 http://www.psnh.com/Residential/Efficiency/Appliance.asp

Unitil NH 50 2 6 http://services.unitil.com/nh/energy_efficiency.asp?t=204

Southwest Gas Corporation NV 100 2 <6 http://www.conservationrebates.com/programs/swg/SWG_NV_Res.aspx

Central New Mexico Electric 

Cooperative NY 40 2 6 http://www.cnmec.org/pdfs/waterheater_rebate_guidelines.pdf

NYSERDA NY 75 2 6 http://www.nyserda.org/economicrecovery/appliance.asp

Verdigris Valley Electric 

Cooperative OK 100 2 6 http://www.vvec.com/products_services/rebate_program.php

Ashland Electric Utility OR 80 2 6 http://www.ashland.or.us/Page.asp?NavID=1366

Ashland Electric Utility OR 40 2 6 http://www.ashland.or.us/Page.asp?NavID=1366

Ashland Electric Utility OR 100 2 <6.5 http://www.ashland.or.us/Page.asp?NavID=1366

Ashland Electric Utility OR 50 2 <6.5 http://www.ashland.or.us/Page.asp?NavID=1366

Central Electric Cooperative OR 25 2 6 http://www.cec-co.com/custserv/energy_info/brochures/energy_star.pdf

Columbia River PUD OR 75 2 6 http://www.crpud.net/residential/efficiency/appliances
17-A-19

Utility or Agency State

Rebate 

$ MEF WF Website

Columbia River PUD OR 25 2 6 http://www.crpud.net/residential/efficiency/appliances

Douglas Electric Cooperative OR 70 2 6 http://www.douglaselectric.com/programs/Rebate_Form.pdf

Eugene Water & Electric Board OR 35 2 6 http://www.eweb.org/public/documents/energy/home_appliance_rebate.pdf

Eugene Water & Electric Board OR 70 2 6 http://www.eweb.org/public/documents/energy/home_appliance_rebate.pdf

Idaho Power OR 50 2 6

http://www.idahopower.com/EnergyEfficiency/Residential/Programs/HomeProducts/

default.cfm

Lane Electric OR 75 2 6 http://www.laneelectric.com/conservation-renewables/rebates-credits/

OTEEC OR 70 2 6 http://www.otecc.com/residentialprograms.aspx

OTEEC OR 25 2 6 http://www.otecc.com/residentialprograms.aspx

Salem Electric OR 60 2 6

http://www.salemelectric.com/residential/pdfs/rebates_programs/ApplianceBrochure.

pdf

Springfield Utility Board OR 70 2 6

http://www.subutil.com/files/static_page_files/E3DD085D-078B-420B267070C0638CD317/RebateForm10.pdf

Tillamook County PUD OR 70 2 6 http://www.tpud.org/nrg_appliance.html

Allegheny Power PA 75 2 http://www.alleghenypower.com/EngConserv/PA/WattWatchers/RebateCW.asp

PPL Electric Utilities PA 75 2 6 http://www.rebate-zone.com/ppl/pdf/PEJ.pdf

City of St.George UT 50 2

http://www.sgcity.org/energyservices/ES%20Appliance%20Rebate%20Application.p

df

Questar Gas UT 75 2 http://www.thermwise.com/home/ApplianceRebates.html

Rocky Mountain Power UT 50 2 6 http://homeenergysavings.net/Utah/appliances/clotheswashers.html

Avista Utilities WA 50 2 6

https://www.avistautilities.com/savings/rebates/Documents/HighEfficiencyRebate_O

REnergyStar-R2.1.5.2009.pdf

Clallam PUD WA 50 2 6

http://www.clallampud.net/uploadedFiles/conservation/documents/energy_star_appli

ance_rebate.pdf

Columbia Rural Electric 

Association WA 70 2 6 http://www.columbiarea.com/programs/Res%20Rebate%20Application.pdf

Grant County Public Utility 

District WA 70 2 6 http://www.gcpud.org/conservation/rebates/index.htm

Grays Harbor PUD WA 75 2 6

https://www.ghpud.org/index.php?option=com_content&task=view&id=89&Itemid=

113

Inland Power and Light Co WA 50 2 6 http://www.inlandpower.com/pdf/appliancerebateform.pdf

Mason PUD WA 50 2 6 http://www.masonpud3.org/powerSupply/applianceRebates.aspx

Modern Electric Water 

Company WA 50 2 6 http://www.mewco.com/promotions/PDF/Rebate%20Flyer.pdf
17-A-20

Utility or Agency State

Rebate 

$ MEF WF Website

Modern Electric Water 

Company WA 25 2 6 http://www.mewco.com/promotions/PDF/Rebate%20Flyer.pdf

Modern Electric Water 

Company WA 12.5 2 6 http://www.mewco.com/promotions/PDF/Rebate%20Flyer.pdf

Okanogan PUD WA 50 2 6 http://www.okanoganpud.org/consrebates.htm

Orcas Power and Light 

Cooperative WA 75 2 6 http://www.opalco.com/wp-content/uploads/2009/03/Rebate-Appliances-9-30-10.pdf

Pacific Power WA 100 2 http://www.homeenergysavings.net/Washington/appliances/clotheswashers.html

Puget Sound Energy WA 50 2 6 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Snohomish County Public 

Utility District No. 1 WA 50 2 6 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Tacoma Power WA 50 2 6 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Barron Electric Cooperative WI 25 2 6 http://www.barronelectric.com/Appliance%20&%20Lighting%20Program.pdf

Eau Claire Energy Cooperative WI 25 2 6 http://www.ecec.com/programs/incentives

Riverland Energy Cooperative WI 25 2 6 http://riverlandenergy.com/RIVERLAND%20HOMEPAGE/rebates.htm 

Rocky Mountain Power WY 75 2 http://www.homeenergysavings.net/Wyoming/appliances/clotheswashers.html

PG&E CA 50 2.2 4.5

http://www.pge.com/myhome/saveenergymoney/rebates/appliance/clothes/index.sht

ml

City of Palo Alto Utilities CA 125 2.2 4.5 http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=4365

Pacific Power CA 50 2.2 4.5 http://www.homeenergysavings.net/California/appliances/clotheswashers.html

Sacramento Municipal Utility 

District (SMUD) CA 75 2.2 4.5 http://www.smud.org/en/rebates/Documents/Clothes-Washer-Fact-Sheet.pdf

Energy Trust of Oregon OR 50 2.2

http://energytrust.org/residential/incentives/Appliances/ENERGYSTARregClothesW

ashers1

Puget Sound Energy WA 75 2.2 4.5 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Snohomish County Public 

Utility District No. 1 WA 75 2.2 4.5 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Tacoma Power WA 75 2.2 4.5 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Pacific Power CA 75 2.4 4 http://www.homeenergysavings.net/California/appliances/clotheswashers.html

Sacramento Municipal Utility 

District (SMUD) CA 125 2.4 4 http://www.smud.org/en/rebates/Documents/Clothes-Washer-Fact-Sheet.pdf

New Braunfels Utilities TX 100 2.4 4.5

http://www.nbutexas.com/Conservation/WaterUsage/WashingMachineRebateProgra

m/tabid/377/Default.aspx

Energy Trust of Oregon OR 100 2.46 http://energytrust.org/residential/incentives/Appliances/ENERGYSTARregClothesW
17-A-21

Utility or Agency State

Rebate 

$ MEF WF Website

ashers1

Rocky Mountain Power UT 75 2.46 http://www.homeenergysavings.net/Downloads/UT_ApplianceForm2010.pdf

Puget Sound Energy WA 100 2.46 4 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Snohomish County Public 

Utility District No. 1 WA 100 2.46 4 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Tacoma Power WA 100 2.46 4 http://www.washwiserebate.com/docs/washwise-qualifying-products.pdf

Rocky Mountain Power WY 50 2.46 http://www.homeenergysavings.net/Wyoming/appliances/clotheswashers.html

Average Rebate Amount for MEF >/= 

1.72 ($2010) $ 61.16 

Average Rebate Amount for MEF >/= 

2.2 ($2010) $ 82.35 
17-A-22

17-A.6 FEDERAL AND STATE TAX CREDITS

This section summarizes the Federal and State tax credits available to consumers who 

purchase energy efficient appliances. This section also describes tax credits available to 

manufacturers that produce certain energy efficient appliances.

17-A.6.1 Federal Tax Credits for Consumers 

The Energy Policy Act of 2005 (EPACT 2005) included Federal tax credits for 

consumers who installed efficient air conditioners or heat pumps; gas or oil furnaces; furnace

fans; and/or gas, oil, or electric heat pump water heaters in new or existing homes.7, 8 The tax 

credits were in effect in 2006 and 2007, expired in 2008, and were reinstated for 2009–2010 by 

the American Recovery and Reinvestment Act.

9

6

Residential appliances must meet the following 

specifications, as applicable, to qualify for Federal tax credits.

• Natural gas and propane furnaces must provide an annual fuel utilization efficiency

(AFUE) of 95 or higher; oil furnaces and gas, oil, and propane boilers must provide 

an AFUE of 90 or higher.

• Central air conditioning units and air-source heat pumps must meet the highest tier 

(III) standards set by the Consortium for Energy Efficiency as of January 1, 2009. 

Table 15-A.5.1 shows the requirements for those equipment types.9

• Fans for heating and cooling systems may consume no more than 2 percent of total 

heating system energy, as defined by the DOE test procedure (may be revised because 

of the 2009 Federal stimulus legislation).

• Gas- or propane-fired water heaters must have an energy factor (EF) of at least 0.82 

or a thermal efficiency of at least 90 percent; heat pump water heaters must have an 

EF of at least 2.0. 

In an effort to evaluate the potential impact of a Federal appliance tax credit program, 

DOE reviewed Internal Revenue Service (IRS) data on the numbers of taxpayers who claimed 

the EPACT credits during tax years 2006 and 2007. DOE estimated the percentage of taxpayers 

who filed Form 5695, Residential Energy Credits.

10 It also estimated the percentage of taxpayers 

who made entries under Form 5695’s section 3, Residential energy property costs, line 3b,

qualified natural gas, propane, or oil furnace or hot water boiler. Although none of these three 

items incorporates clothes washers, DOE reasoned that the percentage of taxpayers making an 

entry on line 3b could serve as a rough indication of the taxpayer participation during the initial 

years of in a Federal tax credit program for an efficient appliance. DOE found that of all 

residential taxpayers filing tax returns, 0.8 percent in 2006 and 0.6 percent in 2007 claimed a 

credit for a furnace or boiler. DOE further found that the percentages of those filing Form 5695 

for any qualifying expenditure (which included installation of efficient windows, doors, and 

roofs) were 3.1 percent in 2006 and 3.2 percent in 2007. 

DOE also reviewed data from a Federal energy conservation tax credit program in place 

in the 1980s. Although this tax credit was available from 1979 through 1985, DOE could locate 

data for only the first three years of the program. 11, 12, 13 For those years (1979, 1980, and 1981),
17-A-23

the percentages of taxpayers filing Form 5695 were 6.4 percent, 5.2 percent, and 4.9 percent.

Given that the data from this earlier tax credit program were not disaggregated by type of 

purchase, they served only to indicate a possible trend of greatest participation in the initial 

program year, followed by slightly less participation in subsequent years. DOE did not find

detailed analysis of the program, however, to identify the possible reasons for such a trend. This 

trend also differs from the more stable trend shown in the first program years of the EPACT

2005 tax credit program.

As discussed in chapter 17, section 17.3.3, DOE estimated the percentage of participation 

in consumer tax credit programs based on its estimates of consumer participation in rebate 

programs, which utilized benefit/cost data specific to each product class. It was difficult to 

compare the estimates derived from the detailed analysis of rebates to the more general data from 

the Federal tax credit program, or to use the IRS data in its analysis of consumer tax credits.

17-A.6.2 Federal Tax Credits for Manufacturers

EPACT 2005 provided Federal Energy Efficient Appliance Credits to manufacturers that 

produced high efficiency refrigerators, clothes washers, and dishwashers in 2006 and 2007.14 The 

Emergency Economic Stabilization Act of 200815 amended the credits and extended them 

through 2010. Manufacturers receive the credits for increasing their production of qualifying 

appliances relative to a two-year rolling baseline. Each manufacturer is allowed a stipulated

amount for all credits. Manufacturers were eligible for Energy Efficient Appliance Credits for 

qualifying models of residential refrigerators, residential and commercial clothes washers, and 

residential dishwashers. The credits were available for models produced in 2008, 2009, and 

2010. The credit to manufacturers of qualifying clothes washers, refrigerators, and dishwashers 

was capped at $75 million for 2008–2010. The most efficient refrigerator (30%) and clothes 

washer (2.2 MEF/4.5 water consumption factor [wcf]) models were not subject to the cap. For 

2011, the credit is capped at $25 million, with the most efficient refrigerators (35%) and clothes 

washers (2.8 MEF/3.5 wcf) are exempted from the cap.16

• $150 for residential or commercial clothes washers manufactured in 2008, 2009, and 

2010 that meet/exceed a 2.0 MEF and do not exceed a 6.0 wcf.

The credits listed below were available 

to manufacturers for qualifying clothes washers manufactured from 2008 through 2011. The 

amounts listed are for each unit manufactured.

• $250 for residential or commercial models manufactured in 2008, 2009, and 2010 that

meet/exceed a 2.2 MEF and do not exceed a 4.5 wcf.

• $175 for residential or commercial, top-loading models manufactured in 2011 that 

meet/exceed 2.2 MEF and do not exceed 4.5 wcf. 

• $225 for residential or commercial, top-loading models manufactured in 2011 that

meet/exceed 2.4 MEF and do not exceed 4.2 wcf.

• $225 for residential or commercial, front-load-loading models manufactured in 2011 that

meet/exceed 2.8 MEF and do not exceed a 3.5 wcf. 
17-A-24

17-A.6.3 State Tax Credits

The States of Oregon and Montana have offered consumer tax credits for efficient 

appliances for several years, and the States of Indiana, Kentucky, and Michigan began offering 

such credits in 2009. The Oregon Department of Energy has disaggregated data on taxpayer 

participation in credits for eligible products. (See the discussion in chapter 17, section 17.3.3, on

tax credit data for clothes washers.) Although DOE reviewed Montana's overall participation 

trend in support of its analysis of Oregon's clothes washer tax credits, Montana’s Department of 

Revenue does not disaggregate participation data by appliance. DOE was unable to obtain tax 

credit data from Indiana, Kentucky, or Michigan. 

Oregon’s Residential Energy Tax Credit (RETC) was created in 1977. After the Oregon 

legislature expanded the RETC program in 1997 to include residential refrigerators, clothes 

washers, and dishwashers, participation in the program increased significantly. The program 

offers two levels of rebates for standard-sized refrigerators having capacities between 12 and 30 

cubic feet. One efficiency level is 20 percent above Federal standard (ENERGY STAR); the 

other is 30 percent above Federal standard (CEE Tier 3). The program subsequently added 

credits for high efficiency heat pump systems, air conditioners, and water heaters (2001); 

furnaces and boilers (2002); and duct/air sealing, fuel cells, heat recovery, and renewable energy 

equipment. For heating, ventilating, and air conditioning equipment; residential appliances; and 

water heaters, the credit is $0.40 per kilowatt saved in the first year, or 25 percent of the net 

purchase price, whichever is less. The credit limit is $1,000 per calendar year; excess credit may 

be carried forward for 5 years. 17

Montana has had an Energy Conservation Tax Credit for residential measures since 

1998.18, 19 The tax credit covers various energy and water efficient products, including ENERGY 

STAR heating/cooling equipment, water heaters, low-flow showerheads and faucets, and light 

fixtures and controls. In 2002 the credit amount was increased from 5 percent of product costs 

(up to $150) to 25 percent (up to $500) per taxpayer. The credit can be used for products 

installed in new construction or remodeling. The tax credit covers only that part of the cost and 

materials that exceed established standards of construction.

Beginning in 2009, Indiana offered a tax credit to individuals and small businesses for 

costs associated with purchasing ENERGY STAR-qualified central air conditioners, room air 

conditioners, furnaces, programmable thermostats, and water heaters. The credit may be claimed 

against state income tax, insurance premium tax, or financial institutions tax. The amount of the 

credit is 20 percent of the expenditure for qualified heating and cooling equipment, to a 

maximum of $100 per taxable year. The credit applies to expenditures made in 2009 and 2010; 

there is no carryover.20, 21

Beginning in 2009, Kentucky began offering a 30-percent state income tax credit for 

taxpayers who install certain energy efficiency measures in their principal residence or 

residential rental property. Qualifying products include water heaters, heat pumps, central air 

conditioners, and advanced main air circulating fans. A product must meet the energy efficiency 

guidelines specified for the Federal tax credit for that product. The tax credit may not exceed 
17-A-25

$250. The credit, which applies to products purchased in taxable years 2009–2015, may be 

carried forward for one year.22, 23

Beginning in 2009, certain low-income Michigan taxpayers became eligible for a tax 

credit for the purchase and installation of qualifying energy efficient home improvements. 

Qualifying improvements are limited to: insulation, water heaters, furnaces, windows, 

refrigerators, clothes washers, and dishwashers. All products must meet the ENERGY STAR 

efficiency criteria. The amount of the credit is 10 percent of the installed cost of each 

improvement, up to $75 for single filers and $150 for joint filers. A taxpayer may not make more 

than one claim under each product category during a single tax year. The credit applies only to 

products purchased in 2009–2011. If the amount of the credit exceeds a taxpayer's tax liability 

for a given year, the balance is refunded. 24, 25
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REFERENCES

 

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2003. Department of Economics, University of California, Berkeley, CA.

2 Lekvall. P., and C. Wahlbin. A Study of Some Assumptions Underlying Innovation 

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3 Geroski, P. A. Models of Technology Diffusion.2000. Research Policy. 29: pp. 603–625. 

4 Van den Bulte, C. Want to know how diffusion speed varies across countries and 

products? Try a Bass model. 2002. Product Development & Management Association.

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5 Rufo, M., and F. Coito. California's Secret Energy Surplus: The Potential for Energy 

Efficiency, 2002. XENERGY Inc. Oakland, CA. Prepared for The Energy Foundation and 

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<http://www.ef.org/documents/Secret_Surplus.pdf>

6 Rufo, M. Personal communication. Itron, Inc., Oakland, CA. Telephone conversations 

with Barbara Atkinson, LBNL. January 2008 and March 2009.

7 Tax Incentives Assistance Project. Consumer Tax Incentives: Home Heating & Cooling 

Equipment. 2009. (Last accessed January 2011.) 

<www.energytaxincentives.org/consumers/heating-cooling.php>

8 Energy Policy Act of 2005. 119 STAT. 594 Public Law 109–58. Section 1333, 26 USC 

25C note, (Posted August 8, 2005) (Last accessed November 2010.) 

<http://frwebgate3.access.gpo.gov/cgibin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ058.109.pdf>

9 Tax Incentives Assistance Project. General Information: Legislative Language & 

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<http://energytaxincentives.org/general/legislative.php>

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15 Emergency Economic Stabilization Act of 2008. (Last accessed November 2010.) 

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19 Montana Department of Revenue. Energy Related Tax Relief. (Last accessed November 

2010.) <http://mt.gov/REVENUE/energyconservation.asp>

20 Indiana Department of Revenue. Information Bulletin #100: Income Tax, 2007. (Last 

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21 Database of State Incentives for Renewables and Efficiency (DSIRE), Indiana Incentives 

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<www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=IN50F&state=IN&

CurrentPageID=1&RE=0&EE=1>

22 Kentucky Department of Revenue. 2009 Energy Efficiency Credits. (Last accessed 

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C6766A3843EE/0/2009EnergyEfficiencyCredits.pdf>

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<www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY29F&re=0&ee=1>
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24 DSIRE. Michigan Incentives/Policies for Energy Efficiency, Energy Efficient Home 

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<http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MI20F&re=0&ee=1>

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08_New_legislation_for_EE_and_RE_1013081_254665_7.pdf>