Councilmember Schwartz Proposes Sales Tax Break on Energy-Efficient Appliances

April 1, D.C. At-Large Councilmember Carol Schwartz introduced the “Energy-Efficient Appliance Tax Holiday Act of 2008.” The bill would provide for a sales tax holiday beginning at 12:01 a.m. on the last Friday of September and ending at 11:59 p.m. on the following Monday, during which energy-efficient appliances (commonly known as “Energy Star” appliances) could be purchased for non-commercial home or personal use with a sales price of $2,500 or less per item, and be exempt from the District’s retail sales tax.

The Energy Star program is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. Its aim is to help everyone save money and protect the environment through energy-efficient products and practices.

According to the Energy Star program, by using energy efficient appliances Americans saved enough energy in 2007 to avoid greenhouse gas emissions equivalent to those from 27 million cars, and in doing so saved $16 billion on utility bills. Noting that Virginia has a similar tax holiday in October of each year, Ms. Schwartz said, “Why should our residents have to shop in Virginia to get these sound environmental and cost savings benefits?”

Councilmembers Wells, Brown, Graham, Cheh, Thomas and Barry co-introduced the tax holiday bill, and Chairman Gray and Councilmembers Bowser and Alexander signed on as co-sponsors.