Maryland Cuts Taxes on Energy Star Goods

Maryland Cuts Taxes on Energy Star Goods

Energy Star appliances are designed to save money by lowering electricity bills; a new tax break makes it even cheaper to buy them -- at least in Maryland.

Through a tax incentive that went into effect July 1, Maryland will set aside the state sales tax on Energy Star-labeled clothes washers, refrigerators, and room air conditioners. The move is part of an incentive program established to encourage the use of solar power, hybrid automobiles, fuel cells, and biomass fuels.

In setting aside the state sales tax on these goods, Maryland joins nine other states offering tax incentives for the purchase of energy efficient products. However, Maryland is the first state to repeal the sales tax on the purchases of Energy Star-labeled appliances.

Maryland's Clean Energy Incentives Act cancels the sales tax on Energy Star room air conditioners effective Jan. 1, 2001, and on refrigerators July 1, 2001. Tax breaks on these appliances were postponed; the federal government anticipates increasing Energy Star qualifying levels as more efficient products become available.

The Energy Star program is a partnership among the Department of Energy, the Environmental Protection Agency, manufacturers, retailers and utilities across the United States to promote the development and sale of high-quality energy-efficient products. The Energy Star label can be found on many types of products, including appliances, lighting, home electronics, windows, office equipment, and heating and cooling equipment.