Energy-Efficient Appliance Manufacturing Tax Credit

July 14, 2021

Summary

Note: This tax credit expired at the end of 2011. The American Taxpayer Relief Act of 2012 retroactively renewed this tax credit for certain appliances manufactured in 2012 and 2013.

The federal Energy Policy Act of 2005 established tax credits for manufacturers of high-efficiency residential clothes washers, refrigerators, and dishwashers produced in calendar years 2006 and 2007. The Energy Improvement and Extension Act of 2008 and The American Taxpayer Relief Act of 2012 extended these credits, depending on the efficiency rating of the manufactured appliance. Manufacturers may only receive these credits for the increase in production of qualifying appliances over a two-year rolling baseline, and only appliances produced in the United States are eligible.

Credits available to manufacturers are as follows:

Dishwashers

$45 for models manufactured in calendar year 2008 or 2009 which use no more than 324 kilowatt hours (kWh) per year and 5.8 gallons per cycle.
$75 for models manufactured in calendar year 2008, 2009, or 2010 which use no more than 307 kWh per year and 5.5 gallons per cycle.
$25 for models manufactured in calendar year 2011 which use no more than 307 kWh per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).
$50 for models manufactured in calendar year 2011, 2012, or 2013 which use no more than 295 kWh per year and 4.25 gallons per cycle (4.75 gallons per cycle for dishwashers designed for greater than 12 place settings).
$75 for models manufactured in calendar year 2011, 2012, or 2013 which use no more than 280 kWh per year and 4 gallons per cycle (4.5 gallons per cycle for dishwashers designed for greater than 12 place settings).

Clothes washers

$75 for residential top-loading models manufactured in 2008 which meet or exceed a 1.72 modified energy factor (MEF) and do not exceed an 8.0 water consumption factor (WCF).
$125 for residential top-loading models manufactured in 2008 or 2009 which meet or exceed a 1.8 MEF and do not exceed a 7.5 WCF.
$150 for residential or commercial models manufactured in 2008, 2009, or 2010 which meet or exceed a 2.0 MEF and does not exceed a 6.0 WCF.
$250 for residential or commercial models manufactured in 2008, 2009, or 2010 which meet or exceed a 2.2 MEF and do not exceed a 4.5 WCF.
$175 for top-loading models manufactured in calendar year 2011 which meet or exceed a 2.2 modified energy factor and do not exceed a 4.5 WCF.
$225 for top-loading models manufactured in calendar year 2011, 2012, or 2013 which meet or exceed a 2.4 modified energy factor and do not exceed a 4.2 WCF.*
$225 for front-loading models manufactured in calendar year 2011, 2012, or 2013 which meet or exceed a 2.8 modified energy factor and do not exceed a 3.5 WCF.*

Refrigerators

$50 for models manufactured in 2008 which are between 20% and 22.9% more efficient than the 2001 energy conservation standards.
$75 for models manufactured in calendar year 2008 or 2009 which are between 23% and 24.9% more efficient than the 2001 energy conservation standards.
$100 for models manufactured in calendar year2008, 2009, or 2010 which are between 25% and 29.9% more efficient than the 2001 energy conservation standards.
$200 for models manufactured in calendar year2008, 2009, or 2010 which are at least 30% more efficient than the 2001 energy conservation standards.
$150 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 30 percent less energy than the 2001 energy conservation standards.
$200 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 35 percent less energy than the 2001 energy conservation standards.*

Each manufacturer is limited to a total of $25 million in credits for 2011, 2012 and 2013 combined. See note below for exceptions to this rule.

IRS Form 8909 is available here. For more information on qualifying products, visit the Energy Star web site.

* These products will not add to the aggregate credit amount and have no separate credit limit.

Program Overview

Implementing Sector:	Federal
Category:	Financial Incentive
State:	Federal
Incentive Type:	Industry Recruitment/Support
Web Site:	http://www.irs.gov/Businesses/Corporations/Manufacturers%27-Energy-Efficient-Appliance-Credit
Administrator:	U.S. Internal Revenue Service
Start Date:	1/1/2007
Eligible Renewable/Other Technologies:	Clothes Washers Dishwasher Refrigerators/Freezers
Incentive Amount:	Dishwashers: $25 - $75 per unit, varies by energy and water efficiency; Clothes washers: $175 - $225 per unit, varies by type, and energy and water efficiency; Refrigerators: $150 or $200, depending on energy-efficiency rating
Maximum Incentive:	The aggregate amount of credit allowed for 2011 is $25 million per taxpayer. Certain refrigerators and clothes washers will not add to the aggregate credit amount. See summary below for more details.
Terms:	Appliances must meet Energy Star 2007 requirements; must be new and in compliance with all applicable performance and safety standards

Authorities

Name:	26 USC § 45M
Date Enacted:	8/8/2005 (subsequently amended)
Effective Date:	1/1/2006
Expiration Date:	12/31/2013

Name:	H.R. 8 (American Taxpayer Relief Act of 2012)
Date Enacted:	01/02/2013
Effective Date:	01/02/2013
Expiration Date:	12/31/2013

Contact

Name:	Public Information - IRS
Organization:	U.S. Internal Revenue Service
Address:	1111 Constitution Avenue, N.W. Washington DC 20224
Phone:	(800) 829-1040

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.