WASHINGTON — As Cash for Clunkers, the popular federal plan to boost the auto industry, fades into history, the government is gearing up for another stimulus plan that is also aimed at energy efficiency. This time, it's rebates for consumers who buy energy-efficient appliances.
The $300 million plan will differ from state to state but generally will provide cash rebates between $50 and $200 to customers who buy appliances that save energy. Dealers say it could reverse a recent trend in a down economy.
"If it's fixable, people are looking at the option of getting it fixed rather than replacing it. However, when you have a rebate that's going to give you an incentive of $100 or $150, or maybe $200, now it becomes economically possible to replace (an appliance)," said Joe Jardeleza of M&M Appliance in Washington, D.C.
One of his customers said the program could change her plans to purchase a used washing machine.
"It would mean a lot to me," said Carolyn Brown. "I really don't have any money to put out for a washer at this time, and the cheapest ones I've been running into are $400 or $450, brand new. So, $200 would certainly help cut it in half."
Reginald Sizemore, owner of the Father's Dream Appliance store in Cleveland, is optimistic about the program.
"It worked great for getting thousands of old cars off the road," Sizemore said. "It will work great for all those people thinking about buying a new household appliance."
There will be no trade-in requirement in the appliance program.
The group Taxpayers for Common Sense sees the program as a waste, particularly because tax credits and manufacturers' rebates already exist for energy-efficient appliances.
"We don't need an additional taxpayers' expense to get this industry going. All the existing incentives are in place from the stimulus itself or from the companies, as well as the states," said Tom Schatz of Taxpayers for Common Sense.