Plan for appliance rebate

Federal government will offer rebates for 'clunker' appliances.

If you were considering buying a new major appliance, you may want to wait until spring. The federal government is planning a cash-for-clunkers appliance program, similar to the one for cars, and South Carolina will have $3.9 million for rebates.

Overall, the plan has budgeted $300 million nationwide for rebates to consumers who buy new energy-efficient appliances. Beginning in March or April, the program will offer between $50 and $500 rebates for consumers buying Energy Star-rated appliances such as refrigerators, washers, dryers, stoves, dishwashers, freezers, water heaters and heating and air conditioning systems.

The rebate will be based on the cost of the new appliance and the difference in the cost between a standard appliance and an Energy Star model. Consumers will have to turn in their old appliances as part of the deal, and, like the clunker cars, the old appliances will be destroyed and recycled.

This rebate is part of the broader federal economic stimulus bill passed earlier this year. As with the clunker car program, the goal is twofold: To stimulate business for appliance manufacturers and dealers and to replace outmoded appliances with energy efficient units to help reduce the nation's carbon footprint.

We thought the cash-for-clunkers program for cars provided a needed boost to the auto industry at a time when sales had slumped. It also helped get thousands of gas-guzzling vehicles off the roads.

We think the same effect could be achieved with a cash-for-clunkers program for appliances. Many employees would benefit from an uptick in appliance sales, and many inefficient appliances would end up in the recycling bin.

And, of course, many consumers are likely to end up with shiny new appliances.