Structure
As of December, 2009, no proposed legislation had been released, and there were few specific details of how the program would be administered, which federal agencies would be involved, or how the tax incentives would be paid (or to whom). The program is expected to involve preliminary energy audits by private contractor energy experts, who then recommend a series of steps for each homeowner to upgrade their home's energy efficiency. As proposed the plan was for the government to pay 50% of the cost of each home improvement project through a rebate, tax credit, or funds paid to manufacturers and retailers, up to a maximum of $12,000 paid for each home. Alternatively, there was speculation that the federal government might give funds to local governments to run their own programs. There was no limitation on eligibility based on tax bracket or income.
Items under consideration for the program included weatherization of home by installing additional insulation, new doors, and windows, and replacing old appliances with more energy-efficient new ones. Expensive items such as washing machines, dishwashers, refrigerators, air conditioners, and heaters, would be covered.
The program was expected to cost approximately $10 billion over the course of one year, paid for out of unspent Troubled Asset Relief Program funds, and would reduce energy consumption of homes that took full advantage of the program by up to 20%. To become effective it would have to be part of a bill passed by the United States Congress.
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