Tuesday, President Obama proposed rebates up to $3000 to help homeowners pay for energy-efficient upgrades in their homes. While Congress has not yet passed this plan as a formal bill, it is a major initiative backed by the White House and is sure to be fast tracked over the next month. The hope of the Home Star program, aka Cash for Caulkers, is to make Americans’ homes more energy-efficient while creating jobs during these trying times.
“I’m convinced that the country that leads in clean energy is also going to be the country that leads in the global economy. I want America to be that nation.”
– President Obama
Fast Fact: Jim Cramer, of Mad Money, first coined the term “Cash for Caulkers.”
So what is Cash for Caulkers all about? Some details have been changed since
Cash for Caulkers was first proposed and more changes will most likely be made for the bill is signed as law. The new plan as we know it today includes two tiers:
Silver Star Rebates: Consumers can expect $1000-$1500 in rebates for each energy-efficient upgrade with a maximum of $3000 or at least 50% of the projects cost (whichever is less). Qualifying home improvements include: insulation, duct sealing, water heaters, HVAC units, windows, and doors. A certified contractor must install the upgrades.
Gold Star Rebates: Consumers interested in a more holistic approach to energy-efficiency could receive up to $3000. This involves a comprehensive energy audit coupled with retrofits that lead to at least 20% higher efficiency. Additional funds are available for upgrades that lead to more than 20% increase in efficiencies.
How is this plan different from the existing $1500 tax credit for energy-efficient tax credits?
These incentives are instant rebates! Consumers would receive the cost savings immediately and the time of purchase, a similar process used for Cash for Clunkers. Contractors would apply for reimbursement from the federal government after the installation is complete.
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