ENERGY STAR Sales Tax Holiday for Energy-Efficient Products

March 30, 2023

Summary

Purchases of certain energy-efficient products during Memorial Day weekend are exempt from the state sales and use tax. This 3-day tax holiday begins on the Saturday before the last Monday in May (Memorial Day) and ends on that same Monday (Memorial Day). The state sales and use tax rate is 6.25% (as of August 2014); some local jurisdictions add additional local sales and use taxes of up to 2%. The state exemption applies to both the state and local portion (if one exists) of the tax.

Although the eligibility of some products is limited according to their sale price, there are no limitations on the total value or number of products exempt from sales tax.

Eligible Technologies

This incentive is available only for the following types of products that meet federal ENERGY STAR requirements:

Air conditioners with a sales price of $6,000 or less
Refrigerators with a sales price of $2,000 or less
Clothes washers
Dishwashers
Dehumidifiers
Ceiling fans
Incandescent or fluorescent light bulbs
Programmable thermostats**

Process

Purchasers are not required to supply an exemption certificate or any other form of documentation in order to claim the exemption. Details on how the exemption is applied to internet and catalog sales, delivery charges, layaway plans, and installation charges are available from the program website. Interested individuals may also contact the office of the Texas Comptroller of Public Accounts with questions.

** ENERGY STAR specification of programmable thermostats was suspended on December 31, 2009; however, any existing stock of ENERGY STAR labeled programmable thermostats offered for sale by retailers is still eligible for the exemption.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Texas
Incentive Type:	Sales Tax Incentive
Web Site:	http://www.window.state.tx.us/taxinfo/taxpubs/tx96_1331/
Administrator:	Comptroller of Public Accounts
Start Date:	05/2008
Eligible Renewable/Other Technologies:	Clothes Washers Dishwasher Refrigerators/Freezers Dehumidifiers Ceiling Fan Air conditioners Programmable Thermostats Other EE
Incentive Amount:	100% of sales and use tax (6.25% - 8.25% depending on local jurisdiction)
Maximum Incentive:	Air conditioners: price of $6,000 or less; Refrigerators: price of $2,000 or less; No limit on total purchases.
Equipment Requirements:	Must meet federal ENERGY STAR efficiency requirements

Authorities

Name:	Texas Tax Code § 151.333
Date Enacted:	06/15/2007
Effective Date:	09/01/2007

Name:

Texas Administrative Code 34-1 § 3.369

Contact

Name:	Information Officer
Organization:	Comptroller of Public Accounts
Address:	Post Office Box 13528, Capitol Station Austin TX 78711-3528
Phone:	(800) 252-5555

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.