Purchase of Energy Star Refrigerator

[Yardley CPA]

It's my understanding that the purchase of an Energy Star rated refrigerator, purchased and placed in service in 2011, is not eligible to be included on form 5695? Is that correct? If I am wrong, what line would the cost of the refrigerator be placed on?

[frazzled]

Kitchen appliances do NOT qualify for the credit.

[Hahn1040]

Some states give a tax advantage.

For VA, you can deduct 20% of the sales tax you pay on an energy efficient appliance

SO- you buy a $2400 frig- sales tax is $120 you get a deduction of $24.

If you are in the top tax bracket for VA (5.75) it saves you just about $1

you can imagine the clients' enthusiasm when they hear this!

ALSO Some utility companies offer rebates.

Unfortunately if your client thinks it is a tax credit and he saves the paperwork to give you

then he may have missed the deadline for applying for the rebate

[Jack from Ohio]

No Federal tax credit for appliance purchase. www.energystar.gov has all the informtion about energy tax credits.

[Yardley CPA]

I didn't think it was eligible and appreciate everyone confirming that.

[jasdlm]

I still have a client or two every year that insists that the person who sold them the appliance told them it qualified for the energy credit. Every time, it causes me to have to take extra time researching because I don't trust myself enough to be certain nothing has changed. :unsure: