17-A-i

APPENDIX 17-A. REGULATORY IMPACT ANALYSIS: SUPPORTING 

MATERIALS

TABLE OF CONTENTS

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

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

17-A.3 NIA-RIA INTEGRATED MODEL..................................................................17-A-4

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

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

17-A.4.2 Adjustment of XENERGY Penetration Curves................................................17-A-6

17-A.4.3 Interpolation of Penetration Curves..................................................................17-A-7

17-A.4.3.1 Market Implementation Rate Function and Curves.....................17-A-7

17-A.4.3.2 Calibrating the Market Implementation Rate Function .............17-A-11

17-A.4.3.3 Limits to the Interpolation Approach.........................................17-A-13

17-A.5 CONSUMER REBATE PROGRAMS...........................................................17-A-15

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

17-A.6.1 Federal Tax Credits for Consumers of Residential Appliances......................17-A-22

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

17-A.6.3 State Tax Credits.............................................................................................17-A-23

LIST OF TABLES

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

Credit Policies for Standard-Sized Dishwashers .....................................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 Standard-Sized Dishwashers ...............................17-A-3

Table 17-A.4.1 Parameter Values for Reference Curves................................................17-A-10

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

Barrier Levels.........................................................................................17-A-12

Table 17-A.4.3 Coefficients of Continuous-value Functions of max, mid, fit and r.......17-A-12

Table 17-A.5.1 Rebates for Residential Dishwashers.....................................................17-A-16

LIST OF FIGURES

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

Adoption of New Technologies...............................................................17-A-6

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

Levels.......................................................................................................17-A-9

Figure 17-A.4.3 Discrete-value Functions of Parameters Driving Implementation Curve 

Shape......................................................................................................17-A-10

Figure 17-A.4.4 Continuous-value Functions of Parameters Driving Implementation 

Curve Shape ...........................................................................................17-A-13
17-A-1

APPENDIX 17-A. REGULATORY IMPACT ANALYSIS: SUPPORTING MATERIALS 

17-A.1 INTRODUCTION

This appendix contains sections discussing the following topics:

• Projections of annual market share increases for the alternative policies;

• NIA-RIA Integrated Model;

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

o Background material,

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

o DOE’s method for interpolating the curves;

• Detailed tables of rebates offered for the considered products; and

• Background material on Federal and state tax credits for appliances
17-A-2

17-A.2 MARKET SHARE ANNUAL INCREASES BY POLICY

For the consumer rebate, consumer tax credit, and manufacturer tax credit policies, Table 

17-A.2.1 shows the annual increases in market shares for residential dishwashers meeting target 

efficiency levels. DOE used these market share increases as inputs to the NIA-RIA spreadsheet 

model.

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

Credit Policies for Standard-Sized Dishwashers

Year Consumer

Rebates

Consumer

Tax Credits

Manufacturer

Tax Credits

2013 21.3 12.8 6.4

2014 21.3 12.8 6.4

2015 21.3 12.8 6.4

2016 21.3 12.8 6.4

2017 21.3 12.8 6.4

2018 21.3 12.8 6.4

2019 21.3 12.8 6.4

2020 21.3 12.8 6.4

2021 21.3 12.8 6.4

2022 21.3 12.8 6.4

2023 21.3 12.8 6.4

2024 21.3 12.8 6.4

2025 21.3 12.8 6.4

2026 21.3 12.8 6.4

2027 21.3 12.8 6.4

2028 21.3 12.8 6.4

2029 21.3 12.8 6.4

2030 21.3 12.8 6.4

2031 21.3 12.8 6.4

2032 21.3 12.8 6.4

2033 21.3 12.8 6.4

2034 21.3 12.8 6.4

2035 21.3 12.8 6.4

2036 21.3 12.8 6.4

2037 21.3 12.8 6.4

2038 21.3 12.8 6.4

2039 21.3 12.8 6.4

2040 21.3 12.8 6.4

2041 21.3 12.8 6.4

2042 21.3 12.8 6.4

2043 21.3 12.8 6.4

2044 21.3 12.8 6.4
17-A-3

For the voluntary efficiency targets, early replacement and bulk government purchases 

policies, Table 17-A.2.2 shows the annual increases in market shares for residential dishwashers. 

DOE used these market share increases as inputs to the NIA-RIA spreadsheet model.

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

Efficiency Targets, Early Replacement, and Bulk Government Purchases 

Policies for Standard-Sized Dishwashers

Year

Voluntary 

Energy 

Efficiency 

Targets

Early 

Replacement

Bulk 

Government 

Purchases

2013 3.5 2.7 0.00

2014 4.5 2.8 0.01

2015 5.5 2.8 0.01

2016 7.0 2.8 0.01

2017 8.5 2.8 0.02

2018 9.9 2.8 0.02

2019 11.2 2.8 0.02

2020 12.5 2.8 0.03

2021 13.8 2.7 0.03

2022 15.1 2.6 0.03

2023 16.3 2.5 0.03

2024 17.6 2.4 0.03

2025 18.9 2.2 0.03

2026 20.2 2.0 0.03

2027 21.4 1.9 0.03

2028 22.7 1.7 0.03

2029 24.0 1.5 0.03

2030 24.4 1.3 0.03

2031 24.7 1.2 0.03

2032 25.1 1.0 0.03

2033 25.5 0.9 0.03

2034 25.9 0.7 0.03

2035 26.3 0.6 0.03

2036 26.7 0.5 0.03

2037 27.1 0.4 0.03

2038 27.5 0.3 0.03

2039 28.0 0.3 0.03

2040 28.4 0.2 0.03

2041 28.8 0.2 0.03

2042 29.3 0.1 0.03

2043 29.6 0.1 0.03

2044 30.0 0.1 0.03
17-A-4

17-A.3 NIA-RIA INTEGRATED MODEL

For this analysis, DOE used its integrated NIA-RIAa model approach that built on the 

NIA models discussed in Chapter 10 and documented in Appendix 10-A.The resulting NIA-RIA 

model featured both the NIA analysis inputs and results and the RIA inputs with capability to 

generate results for each of the RIA policies. A separate module produced summaries of inputs 

for the rebate policy, generated their penetration curves (discussed in section 17-A.4.3 below), 

reported shipment and market share increase data by product class, and produced summary tables 

for the national energy savings and net present value results reported in chapter 17, section 17.4. 

This module also generated tables of market share increases for each policy reported in section 

17-A.2 of this Appendix.

17-A.4 CONSUMER REBATE POLICY MARKET PENETRATION CURVES

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

DOE used to analyze the Consumer Rebates policy. Next it discusses the adjustments it made to 

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

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

resulting curve for the standard-sized dishwasher product class is in chapter 17, section 17.3.2.2.

17-A.4.1 Introduction

XENERGY, Inc.b

1

, developed a re-parameterized, mixed-source information diffusion 

model to estimate market impacts induced by financial incentives for purchasing energy efficient 

appliance The basic premise of the mixed-source model is that information diffusion drives the 

adoption of technology. 

Extensive economic literature describes the diffusion of new products as technologies 

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

applicable to individual consumers or to technologies from competing firms.2,3,4 One study 

records researchers’ attempts to investigate the factors that drive diffusion processes.5 Because a 

new product generally has its own distinct characteristics, few studies have been able 

conclusively to conclusively 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. For many products, a 

ceiling 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 

 

a NIA = national impact analysis; RIA = regulatory impact analysis

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

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 is used widely in marketing and social studies. 

The epidemic model 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.

3

The model incorporates information diffusion from both internal sources (spread 

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

“announcement effect” produced by government agencies, institutions, or commercial 

advertising). The model incorporates both internal and external sources by combining a logistic 

function with an exponential function.4,5

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

general shape of the diffusion curve for a specific product.4,5 If adoption of a product is 

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

a high rate of diffusion occurs at the beginning of the process. In this scenario, 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 relatively small 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 most strongly 

by internal sources of information, the number of adopters increases gradually, forming a convex 

curve (the logistic curve in Figure 17-A.4.1).
17-A-6

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

Adoption of New Technologies

17-A.4.2 Adjustment of XENERGY Penetration Curves

In consultation with the primary authors of the 2002 XENERGY study who later 

conducted similar California studies, DOE made some adjustments to XENERGY’s original 

implementation (penetration) curves.

6 The experiences with utility programs since the 

XENERGY study indicate that incentive programs have difficulty achieving penetration rates as 

high as 80 percent. Consumer response is limited by barriers created by consumer 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 low barriers and no barriers curves (the latter used only when a product has a very 

high base-case-market share) remained, respectively, with 80 percent and 100 percent as their

maximum penetration rates. For the interpolated penetration curves (discussed below), DOE set 

the no barriers and extremely high barriers curves as the upper and lower bounds, respectively, 
17-A-7

for any benefit/cost ratio points higher or lower than the curves. It set another constraint such 

that the policy case market share cannot be great than 100 percent, as might occur for products 

with high base case market shares of the target-level technology.

17-A.4.3 Interpolation of Penetration Curves

As discussed above, the XENERGY penetration (implementation) curves followed a 

functional form to estimate the market implementation rate caused by energy efficiency 

measures such as consumer rebates.c

1

The XENERGY report presents five reference market 

implementation curves that vary according to the level of market barriers to technology 

penetration. Such curves have been used by DOE in the Regulatory Impact Analyses for 

rulemakings for appliance energy efficiency standards to estimate market share increases in 

response to rebate programs.d They provide a framework for evaluating technology penetration, 

yet require matching the studied market to the curve that best represents it. This approximate 

matching can introduce some inaccuracy to the analysis. 

This section presents an alternative approach to such evaluation: a method to estimate market 

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

following describes the market implementation rate function and the reference curves, the

method to calibrate the function to a given market, and the limitations of the method. 

17-A.4.3.1 Market Implementation Rate Function and Curves

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

the informed markete that will accept each energy-efficiency measure based on the participant’s 

benefit/cost ratio: 

imp(bc) = max

�1 + e

−ln�bc

4 �

� ∙ (1 + e−�it∙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

 

c The RIA chapter refers to these curves as penetration curves. This section, in references to the original source, uses 

the term implementation curve.

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

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

rebate impacts. 

e The informed market refers to the portion of the market aware and informed about the energy efficiency measure.
17-A-8

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

In recent efficiency standards rulemakings, DOE has been adopting a slightly different 

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

introducing this parameter in Equation [1] and rewriting it without the exponential and 

logarithmic operators, the market implementation rate of rebate programs can be evaluated using 

the following equation: 

imp(bc) = max

�1 + 1

r ∙ bc� ∙ (1 + (mid ∙ bc)−fit ) [2]

In XENERGY’s report, Equation [1] is used to generate five primary (reference) curves. 

These curves produce initial theoretical results that are calibrated to actual measure 

implementation results associated with the first year of major utility energy efficiency programs. 

Different curves, generated using distinct values of the parameters max, mid, fit and r, reflect 

different levels of market barriers for different efficiency measures. 

DOE has been using similar curves in the appliance efficiency standards rulemaking. The 

curves characterize market implementation rates for five reference levels of market barriers: No 

Barriers, Low Barriers, Moderate Barriers, High Barriers, and Extremely High Barriers. Figure 

17-A.4.2 presents the five reference curves. 
17-A-9

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

Reference Levels

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 in Figure 17-A.4.3 as discrete-value functions.

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-10

Table 17-A.4.1 Parameter Values for Reference Curves

Market Barriers Level

No Barriers Low Barriers Moderate 

Barriers High Barriers Extremely High Barriers

maxd 1.0 0.8 0.7f 0.6f 0.5 f

midd 10 2 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

Figure 17-A.4.3 Discrete-value Functions of Parameters Driving Implementation 

Curve Shape

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

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

 

f DOE adopted these parameters for the Refrigeration Products RIA, as discussed in section 17-A.4.2, after 

consultation with the implementation curve authors. 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 market barrier 

levels was 0.5. RIAs developed during prior rulemakings for Furnaces and Boilers, Commercial Unitary Air 

Conditioners and Heat Pumps, and Distribution Transformers used a max value of 0.8 for all but the no barriers

curve, based on the original penetration curve values from XENERGY’s report. 

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-11

technology corresponding to the mandatory standard’s chosen efficiency level. It then estimated 

the effect of a rebate program on the technology market penetration using that curve. For this 

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 to the effects of a rebate program 

on the studied market.

17-A.4.3.2 Calibrating the Market Implementation Rate Function

The procedure previously described lacks accuracy when the studied market penetration 

point based on the actual benefit/cost ratio does not lie close to one of the reference curves. This 

section presents an interpolation approach to eliminate such inaccuracy. The interpolation 

process provides intermediate, continuous values for the four parameters (max, mid, fit and r) 

driving the market implementation curves. These intermediate values are obtained after linear 

interpolation of their corresponding reference values. 

The four parameters (max, mid, fit and r) were previously defined as discrete-value functions 

(maxd(bd), midd(bd), fitd(bd) and rd(bd)) of the market barriers level (Table 17-A.4.1, Figure 17-

A.4.2). To facilitate the interpolation, it is necessary to transform the four discrete-value 

functions into continuous functions, the latter being thus 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 proposed, ranging from 0 to 5 (bc∈[0,5]). The 

correspondence between the discrete-values of market barrier levels and bc are shown in Table 

17-A.4.2. 

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]

where ∝x (bc) and βx(bc) are shown in Table 17-A.4.3.

The continuous-value functions defined for max, mid, fit and r, as expressed by Equations 

[4]-[7], are then substituted in Equation [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]
17-A-12

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

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

Market Barriers Level Intervals

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
17-A-13

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

Figure 17-A.4.4 Continuous-value Functions of Parameters Driving 

Implementation Curve Shape

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 corresponding to the mandatory standard’s efficiency level. Once 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

bc∗ benefit/cost ratio with rebate.

17-A.4.3.3 Limits to the Interpolation Approach

The approach presented above increases the accuracy of the estimate of the market 

implementation rate resulting from a rebate program. Consequently, it improves the analysis of 

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-14

the market effects of rebate programs. However, whereas it is feasible to develop interpolated 

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

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

boundaries for the market barriers level would be: 

(a) Zero Barriers (b0): With the assumption of the rational consumer, a tiny increase in the 

benefit/cost ratio of a technology with that ratio greater than 1 would be sufficient to make the 

technology widely adopted.g This 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 not be 

sufficient to cause the market to adopt a technology. This would result in the following 

implementation rate function: 

imp(b∞, bc) = 0, ∀bc

However, notwithstanding the existence of such theoretical boundaries, the analysis of 

market implementation rates in cases of markets 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 the one in the Extremely High Barriers curve (idem), should follow the former 

analysis approach (as described at the end of section 17-A.4.3.2). It should rely, respectively, on 

the No Barriers or the Extremely High Barriers curves to estimate a relative market increase due 

to the rebate program. 

 

g When the benefit/cost ratio is 1 the participant is indifferent to adopting the technology or not, and the 

implementation rate, in this case, would be undetermined.
17-A-15

17-A.5 CONSUMER REBATE PROGRAMS 

DOE found many organizations nationwide, comprising electric utilities and municipal 

and regional agencies, that have rebate programs for residential dishwashers. The organizations 

offered 124 rebates for standard-sized models that met various efficiency criteria. Table 17-A.5.1 

provides the organizations’ names, states, rebate amounts, kWh/year levels, and program 

websites. If there is more than one entry for an organization, that organization offers different 

rebate amounts depending on efficiency level, or separate rebates by state or region. The average

rebate amount for dishwashers meeting a maximum level of 307 kWh/year, given in 2011$ at the 

end of the table,h

 

h DOE gathered rebate data for dishwashers during 2011. In the analysis, which assumes 2010$, it used the same 

rebate values, in the absence of a conversion factor for 2011$.

is a simple average of the individual amounts for units meeting that efficiency 

level (rather than being population-weighted). 
17-A-16

Table 17-A.5.1 Rebates for Residential Dishwashers

Utility or Agency State

Rebate

Amount $ KWh/Year Website

PG&E CA 30 324

http://www.pge.com/includes/docs/pdfs/myhome/saveenergymoney/rebates/pro

perty/multifamily_catalog.pdf

SDG&E (Electric) CA 30 324 http://www.sdge.com/documents/residential/HomeRebatesApplication.pdf

Northern Plains EC ND 30 324

http://www.nplains.com/miscellaneous/pdf/NPEC%20Rebate%20Form_2009_

Final.pdf

JEA FL 30 324

http://www.jea.com/about/pub/downloads/waterheatingappliancesequipmentcat

alog_jeaiswec20110601.pdf

Allegheny Power PA 25 324

http://www.alleghenypower.com/EngConserv/PA/WattWatchers/RebateDW.as

p

Anaheim Public Utilities CA 50 307 http://www.anaheim.net/articlenew2222.asp?id=4152

Burbank Water & Power CA 62.5 307

http://www.burbankwaterandpower.com/incentives-for-residents/residentialrebates-home-rewards

City of Lompoc Utilities CA 50 307 http://www.cityoflompoc.com/utilities/conservation/

Hercules Municipal Utility CA 50 307 http://www.ci.hercules.ca.us/index.aspx?page=157

Lassen Municipal Utility District CA 50 307 http://www.lmud.org/documents/appliance.pdf

Lodi Electric Utility CA 50 307 http://lodielectric.com/residential/rebateoffer.asp?id=2

Pacific Power CA 20 307 http://www.homeenergysavings.net/California/appliances/dishwashers.html

PG&E CA 50 307

http://www.pge.com/includes/docs/pdfs/myhome/saveenergymoney/rebates/pro

perty/multifamily_catalog.pdf

Plumas-Sierra REC CA 50 307 http://www.psrec.coop/energy_rebates.php?sec=enersol&pag=enerreb

Riverside Public Utilities CA 50 307 http://www.riversideca.gov/utilities/resi-energystar.asp

SoCalGas CA 30 307 http://www.socalgas.com/documents/rebates/2010MultifamilyApplication.pdf

SoCalGas CA 50 307 http://www.socalgas.com/documents/rebates/2010MultifamilyApplication.pdf

SoCalGas CA 30 307 http://www.socalgas.com/for-your-home/rebates/

Truckee Donner Public Utility District CA 100 307 http://www.tdpud.org/index.php?cId=34

Black Hills Energy (Electric) CO 50 307 http://www.blackhillsenergy.com/services/dsm/res_newconstruction.php

Delta-Montrose Electric Association CO 30 307

http://www.dmea.com/index.php?option=com_content&view=article&id=74&I

temid=107

Empire Electric Association CO 30 307 http://www.eea.coop/pdf/EEA-EEC_Handout_Res.pdf

Fort Collins Utilities CO 25 307

http://www.fcgov.com/utilities/residential/conserve/water-efficiency/clotheswasher-dishwasher-rebates

Gunnison County Electric CO 15 307 http://www.gcea.coop/EE/rebate_program.cfm
17-A-17

Utility or Agency State

Rebate

Amount $ KWh/Year Website

Holy Cross Energy CO 75 307 http://www.holycross.com/UserFiles/File/Cash_Rebates_%2808.01.09%29.pdf

La Plata Electric Association CO 40 307 http://www.lpea.coop/programs_services/ApplianceRebate.pdf

Longmont Power & Communications CO 50 307 http://www.ci.longmont.co.us/lpc/res/appliance_rebate_program.htm

Morgan County REA CO 50 307 http://www.mcrea.org/miscellaneous/pdf/APPLIANCE.pdf

Mountain View Electric Association, 

Inc CO 30 307 http://www.mvea.org/documents/PolicyA-012EECFactSheetrevised2010.pdf

Poudre Valley REA CO 30 307 http://www.pvrea.com/programs/rebates.htm

San Miguel Power Association CO 60 307 http://www.smpa.com/EE/rebates.cfm

Sangre De Cristo Electric Association CO 40 307 http://www.myelectric.coop/products/eec.cfm

Southeast Colorado Power Association CO 40 307 http://secpa.com/Sites/Appliances.html

United Power CO 30 307 http://www.unitedpower.com/Documents/ApplianceRebateApplication_11.pdf

Lake Worth Utilities FL 75 307

http://www.lakeworth.org/vertical/Sites/%7B5E6FE119-0228-4C9B-B2DB067168049C16%7D/uploads/%7B6EF9A809-4701-4E0B-AE3AA7D102EE42FB%7D.PDF

Ocala Utility Services FL 75 307 http://www.ocalafl.org/COO3.aspx?id=947

Marietta Power & Water GA 50 307 http://www.mariettaga.gov/departments/utilities/greenstreet.aspx

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://www.swiarec.coop/cgiscript/csArticles/uploads/80/R6+Energy+Star+Appliances+2010%5B1%5D.pdf

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307 http://farmersrec.com/documents/2011rebates/R6%20ESAppliance.pdf

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://www.cecnet.net/pdfs/Rebate%20Forms/2010%20rebate%20forms/R6%2

0appliance%202011.pdf

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307 http://www.guthrie-rec.coop/cgi-script/csArticles/articles/000000/000049.htm

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://www.recinfocenter.com/UserDocs/Library/MidlandRebateBrochureWeb.

pdf

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://www.pellacea.org/index.php?option=com_content&view=article&id=310&Itemid=245
17-A-18

Utility or Agency State

Rebate

Amount $ KWh/Year Website

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307 http://www.tiprec.com/2011%20Rebate%20Forms/Appliance.PDF

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://test.ecirec.coop/upload/3-

Communications%20Items%20%28news,%20literature,%20mailings,%20etc.%

29/Literature%20&%20Handouts,%20Member/Energy%20Efficiency/MSbResEnIncenWth%28MS-0018%29.pdf

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307

http://www.linncountyrec.com/energy-efficiency/incentives/energy-starappliances

Rural Electric Cooperatives Energy 

Efficiency Rebate Programs (Offered 

by 12 Utilities) IA 25 307 http://www.easterniowa.com/

Alliant Energy Interstate Power and 

Light (Electric) IA 20 307

http://alliantenergy.com/UtilityServices/ForYourHome/RewardsIncentives/Iowa

IncentivePrograms/014677

Ames Electric Department IA 50 307 http://www.cityofames.org/modules/showdocument.aspx?documentid=2632

Black Hills Energy (Gas) IA 20 307

http://www.blackhillsenergy.com/services/programs/homes-heateffia.php#appliance

MidAmerican Energy (Electric) IA 20 307 http://www.midamericanenergy.com/ee/include/pdf/ia_app_rebate.pdf

Missouri River Energy Service 

Member Utilities IA 25 307

http://www.brightenergysolutions.org/municipalities/?category=home&state=ia

&municipality=1&program=32

Muscatine Power and Water IA 50 307 http://www.mpw.org/residential_rebates.aspx

Allegheny Power MD 25 307

http://www.alleghenypower.com/EngConserv/MD/WattWatchers/RebateDW.as

p

MuniHELPS MA 50 307 http://www.munihelps.org/energy-rebate-programs.html

Chicopee Electric Light MA 50 307 http://www.munihelps.org/2011_rebate_forms/MailinformChicopee.pdf

Concord Municipal Light Plant MA 50 307 http://www.concordma.gov/pages/ConcordMA_LightPlant/appliance

Mansfield Municipal Electric 

Department MA 75 307 http://www.mansfieldelectric.com/consumerforms/Appliance-Rebate-App.pdf

Marblehead Municipal Light 

Department MA 25 307 http://www.marbleheadelectric.com/9-6_Rebate_guide_for_MMLD.pdf

Marblehead Municipal Light 

Department MA 50 307 http://www.marbleheadelectric.com/9-6_Rebate_guide_for_MMLD.pdf

Reading Municipal Light Department MA 50 307 http://rmld.virtualtownhall.net/Pages/RMLDMA_Residential/rebate.pdf
17-A-19

Utility or Agency State

Rebate

Amount $ KWh/Year Website

Shrewsbury Electric MA 50 307 http://www.shrewsbury-ma.gov/egov/docs/123135451491.htm

Wakefield Municipal Gas & Light 

Department MA 50 307

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

ram.htm

Efficiency United and Energy 

Optimization (Electric) MI 25 307 http://michigan-energy.org/util_cloverland.asp

Alexandria Light and Power MN 25 307 http://www.alputilities.com/residential_rebates.cfm

Anoka Municipal Utility MN 25 307

http://anokaelectric.govoffice3.com/vertical/Sites/%7BEE297CC6-2282-4A47-

B4BA-550646AB0F76%7D/uploads/%7B9F151102-2897-4C7F-A906-

EAB5993966E1%7D.PDF

Austin Utilities (Gas and Electric MN 25 307 http://www.austinutilities.com/pages/residential_conserve_incentives.asp

Fairmont Public Utilities MN 25 307 http://www.smmpa.org/members.asp?utility=133&service=279

Grand Marais PUC MN 25 307 http://www.smmpa.org/members.asp?utility=65&service=280

Hutchinson Utilities Commission MN 50 307 http://www.hutchinsonutilities.com/rebateresident.html

Lake City Utilities MN 25 307 http://www.smmpa.org/members.asp?utility=68&service=281

Litchfield Public Utilities MN 25 307 http://www.smmpa.org/upload/2011LFrebate%20summary%20sheetRES.pdf

Marshall Municipal Utilities MN 50 307 http://www.marshallutilities.com/residential/energystar.php

Minnesota Valley Electric Cooperative 

- Residential Energy Efficiency MN 25 307 http://www.mvec.net/save/rebates.asp

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/0c/0cefa7e6-86da-446e-9871-

b46b4f3e2e9d.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/cd/cd5bd874-d9a9-4ac9-9b67-

352ed8909873.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/9f/9f9e23ae-1311-4d1a-a37c79528208d6f7.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/3c/3ceb2928-b5fd-4276-9c42-

6742ea57e0a9.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/6c/6cb23a25-d204-4072-9c34-

52006407d949.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307 http://www.mmpa.org/Uploaded_Files/2d/2de062d1-a1b4-

MMPA-Residential Energy Efficiency 

Program MN 60 307 http://www.shakopeeutilities.com/Resdl_Appliance_Rebate_Form.pdf

MMPA-Residential Energy Efficiency 

Program MN 25 307

http://www.mmpa.org/Uploaded_Files/c0/c0829b73-49aa-46ae-b7cc5577e932ac70.pdf
17-A-20

Utility or Agency State

Rebate

Amount $ KWh/Year Website

Mora Municipal Utilities MN 25 307

http://www.smmpa.org/upload/2011MORArebate%20summary%20sheetRES.p

df

New Prague Utilities Commission MN 25 307 http://www.smmpa.org/upload/2011NPrebate%20summary%20sheetRES.pdf

New Ulm Public Utilities MN 25 307

http://www.ci.new-ulm.mn.us/vertical/Sites/%7B1E9156B6-EE87-4ADE9BB6-37AF3590FA0E%7D/uploads/%7B75585A25-384D-4602-87F0-

A70264213037%7D.PDF

North Branch Municipal Water & Light MN 25 307 http://www.smmpa.org/upload/2011NBrebate%20summary%20sheetRES.pdf

Owatonna Public Utilities MN 25 307

http://www.owatonnautilities.com/residential-customers/residentialrebates/energy-star-appliances

Preston Public Utilities MN 25 307

http://www.smmpa.org/upload/2011PRESrebate%20summary%20sheetRES.pd

f

Princeton PUC MN 25 307 http://www.smmpa.org/upload/2011PRINrebate%20summary%20sheetRES.pdf

Redwood Falls Public Utilities MN 25 307 http://www.smmpa.org/upload/2011RFrebate%20summary%20sheetRES.pdf

Rochester Public Utilities MN 25 307 http://www.rpu.org/pdfs/2011resrebateapp.pdf

Saint Peter Municipal Utilities MN 25 307 http://www.smmpa.org/upload/2011SPrebate%20summary%20sheetRES.pdf

Spring Valley Public Utilities MN 25 307 http://www.smmpa.org/upload/2011SVrebate%20summary%20sheetRES.pdf

Sterns Electric Association MN 25 307 https://www.stearnselectric.org/energystarres.htm

Waseca Utilities MN 25 307 http://www.smmpa.org/upload/2011WASrebate%20summary%20sheetRES.pdf

Wells Public Utilities MN 25 307

http://www.smmpa.org/upload/2011WELLSrebate%20summary%20sheetRES.

pdf

Willmar Municipal Utilities MN 50 307

http://wmu.willmar.mn.us/main/index.php?option=com_content&view=categor

y&layout=blog&id=58&Itemid=255

Residential Energy Efficiency Rebate 

(Offered by Members of Associated 

Electric Cooperative) MO 50 307 http://www.callawayelectric.com/content/rebates

Co-Mo Electric Cooperative MO 50 307 http://www.co-mo.coop/documents/HomeApplianceRebateApp_000.pdf

Cuivre River Electric MO 50 307

http://www.cuivre.com/MemberServices/RebatePrograms/tabid/121/Default.asp

x

Intercounty Electric Cooperative MO 50 307 http://www.ieca.coop/PROGRAMS/REBATES/tabid/116/Default.aspx

Missouri Rural Electric Cooperative MO 50 307 http://www.morec.org/page.php?id=2

Ozark Border Electric Cooperative MO 50 307 http://www.ozarkborder.org/rebate_info.html

Platte-Clay Electric Cooperative MO 50 307

http://www.pcec.coop/Manage-Energy/Take-Control-AndSave/Appliances.html
17-A-21

Utility or Agency State

Rebate

Amount $ KWh/Year Website

Southwest Electric Cooperative MO 50 307 http://www.swec.org/rebates-a-audits.html

White River Valley Electric 

Cooperative MO 50 307 http://whiteriver.org/residential_rebate_program.aspx

Yellowstone Valley Electric 

Cooperative MT 25 307 http://www.yvec.com/innerpage.php?cat_id=37

Carteret-Craven Electric Cooperative NC 25 307

http://www.carteretcravenelectric.coop/myHome/energyEfficiency/rebateSpecia

ls.aspx

Four-County EMC NC 50 307 http://www.fourcty.org/index.php?p=5&s=79

South River EMC NC 25 307 http://www.sremc.com/ESRebates.aspx

Residential Energy Efficiency Rebate 

(Offered by Several Cooperative 

Utilities) OK 50 307 http://www.lrecok.coop/content.cfm?id=2035

Verdigris Valley Electric Cooperative OK 50 307 http://www.vvec.com/products_services/rebate_program.php

Ashland Electric Utility OR 37.5 307 http://www.ashland.or.us/Page.asp?NavID=14039

Tillamook County PUD OR 25 307 http://www.tpud.org/nrg_appliance.html

CoServ Electric Cooperative TX 15 307

http://www.coserv.com/TogetherWeSave/ThinkGreenRebates/tabid/282/Defaul

t.aspx

Guadalupe Valley Electric Cooperative TX 50 307

Avista Utilities (Electric) WA 20 307

http://www.avistautilities.com/savings/rebates/Documents/EnergyStar_Applian

ceRebates-0511.pdf

Riverland Energy Cooperative WI 25 307

http://riverlandenergy.com/RIVERLAND%20HOMEPAGE/documents/rebates

2011.pdf

Rocky Mountain Power WY 20 307 http://homeenergysavings.net/Wyoming/appliances/dishwashers.html

Pacific Power WA 20 307 http://www.homeenergysavings.net/Washington/appliances/dishwashers.html

City of Palo Alto Utilities CA 50 295 http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=4365

SMUD CA 50 295 http://www.smud.org/en/rebates/Documents/Appliance-Rebate-Application.pdf

Cedar Falls Utilities IA 50 295 http://www.cfu.net/save-energy/residential-rebates.aspx

Glendale Water and Power CA 35 284

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

ving_rebates.aspx

Average Rebate Amount for

307 kWh/yr ($2011) $37.23
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 who produce certain energy efficient appliances.

17-A.6.1 Federal Tax Credits for Consumers of Residential Appliances

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 These 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 (ARRA). There was a $1,500 cap on the credit per home, including the 

amount received for insulation, windows, and air and duct sealing. Congress extended this 

provision for 2011, with some modifications to eligibility requirements, and reductions in the cap 

to $500 per home.

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 tax credits during tax years 2006 and 2007. It estimated the percentage of taxpayers who filed 

Form 5695, Residential Energy Credits.9 It also estimated the percentage of taxpayers with 

entries under Form 5695’s section 3, Residential energy property costs, line 3b, qualified natural 

gas, propane, or oil furnace or hot water boiler. DOE reasoned that the percentage of taxpayers 

with an entry on Line 3b could serve as a rough indication of the potential of taxpayer 

participation in a Federal tax credit program for furnaces during the initial program years. 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 energy property expenditure (which also included

installation of efficient windows, doors and roofs) were 3.1 and 3.2 percent in 2006 and 2007 

respectively. 

DOE also reviewed data from an earlier Federal energy conservation tax credit program 

in place in the 1980s. While this tax credit was available from 1979 through 1985, DOE located 

data for only the first three years of the program.10,11 ,12 For those three years - 1979, 1980, and 

1981 - 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 energy property, this data series served only to indicate a possible trend of greater 

participation in the initial program year, followed by slightly smaller participation in subsequent 

years. However, DOE did not find detailed analysis of this program to indicate the possible 

reasons for such a trend. Also, this trend varies from the more stable trend shown in the EPAct 

2005 energy tax credit program data for its first two program years.

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

in consumer tax credit programs using its estimates of consumer participation in rebate programs 

that was based on benefit/cost data specific to each product class. Hence it was difficult to 
17-A-23

compare these detailed estimates to the more general data analysis described above from the 

existing Federal tax credit program, or to use the IRS data analysis in its consumer tax credit 

analysis.

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 2007.13

The Emergency Economic Stabilization Act of 200814 amended the credits and extended them 

through 2010. The credits were extended again to 2011 with modifications in the eligibility 

requirements. Manufacturers who produce these appliances receive the credits for increasing 

their production of qualifying appliances. The credits were available for models produced in 

2008, 2009, and 2010 and 2011. 

The credit amounts applied to each unit manufactured. The credit to manufacturers of 

qualifying clothes washers, refrigerators and dishwashers is capped at $75 million for the period 

of 2008-2010. However, the most efficient refrigerator (30%) and clothes washer (2.2 MEF/4.5 

wcf) models are not subject to the cap. The credit to manufacturers is capped at $25 million for 

2011. The most efficient refrigerators (35%) and clothes washers (2.8 MEF/3.5 WCF) are 

exempted from this cap.

15

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 Kentucky, Michigan and Indiana began offering 

such credits in 2009. The Oregon Department of Energy (ODOE) 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.) Montana’s Department of Revenue does not 

disaggregate participation data by appliance, although DOE reviewed Montana's overall 

participation trends and found them congruent with its analysis of Oregon's clothes washer tax 

credits. DOE was unable to obtain state 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. For standardsized refrigerators the program offers two levels of rebates for units between 12 and 30 ft.3 The 

required efficiency levels are 20 percent above Federal standard (ENERGY STAR) and 30 

percent above Federal standard (CEE Tier 3). The program subsequently added credits for highefficiency 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 for energy efficient appliances and heating and cooling 

systems is $1,000 per calendar year; excess credit may be carried forward for 5 years.16
17-A-24

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

1998.17 The tax credit covers various residential 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 amount of the credit 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 projects. The tax credit covers only that 

part of the cost and materials that exceed established standards of construction.

Beginning in 2009, Kentucky offered a 30 percent state income tax credit for taxpayers 

who install certain energy efficiency measures in their principal residence or residential rental 

property. The qualifying products include water heaters, heat pumps, central air conditioners, and 

advanced main air circulating fans. A product must meet the same energy efficiency guidelines 

as specified for the Federal tax credit for that residential product. The tax credit may not exceed 

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

carried forward for 1 year.18,19

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

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

definition of qualifying home improvements is limited to the following categories: insulation, 

water heaters, furnaces, windows, refrigerators, clothes washers, and dishwashers. All equipment 

must meet the EPA Energy Star efficiency criteria. The amount of the credit is 10% 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 equipment category during a single tax 

year. The credit only applies to equipment purchased in 2009 - 2011. If the amount of the credit 

exceeds a taxpayer's tax liability for a given year, the balance is refunded.20,21

For 2009 and 2010 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 was claimed 

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

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

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

there was no carryover. This credit was discontinued after 2010.22
17-A-25

REFERENCES

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Efficiency, 2002. XENERGY Inc. (Last accessed September, 2011.) 

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

2. Hall, B. H. and B. Khan, Adoption of New Technology. Working Paper No. E03-330, 

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

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Diffusion Functions". Swedish Journal of Economics, 1973

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

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<http://www.irs.gov/pub/irs-soi/81dbfullar.pdf>
17-A-26

13. U.S. Department of the Treasury–Internal Revenue Service, Form 8909: Energy Efficient 

Appliance Credit, (Last accessed September, 2011.) <www.irs.gov/pub/irspdf/f8909.pdf>

14. Emergency Economic Stabilization Act of 2008, (Last accessed September, 2011.) 

<http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=110_cong_bills&docid=f:h1424enr.txt.pdf>

15. Tax Incentives Assistance Project, Manufacturers Incentives, (Last accessed September, 

2011.) <http://energytaxincentives.org/builders/appliances.php>

16. Oregon Department of Energy–Conservation Division, Residential Energy Tax Credits, 

(Last accessed September, 2011.) 

<http://oregon.gov/ENERGY/RESIDENTIAL/residential_energy_tax_credits.shtml>

17. Montana Department of Revenue, Energy Related Tax Relief: Energy Conservation 

Installation Credit, (Last accessed September, 2011.) 

<http://revenue.mt.gov/forindividuals/ind_tax_incentives/energy_related_tax_relief.mcpx

#energy>

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

September, 2011.) <http://revenue.ky.gov/NR/rdonlyres/E2DAFC0B-4F18-4D76-91F8-

C6766A3843EE/0/2009EnergyEfficiencyCredits.pdf>

19. Database of State Incentives for Renewables and Efficiency (DSIRE), Personal Income 

Tax Incentive: Kentucky, Energy Efficiency Tax Credits (Personal), (Last accessed 

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<www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY29F&re=0&ee=1>

20. Database of State Incentives for Renewables and Efficiency (DSIRE), Michigan 

Incentives/Policies for Energy Efficiency, Energy Efficient Home Improvements Tax 

Credit, (Last accessed September, 2011.) 

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

>

21. Michigan Department of Treasury, Michigan Energy Efficiency / Renewable Energy Tax 

Credit Legislation, (Last accessed September, 2011.) 

<http://www.michigan.gov/documents/dleg/10-29-

08_New_legislation_for_EE_and_RE_1013081_254665_7.pdf>

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

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