SALT Report 1168 – North Carolina’s annual Energy Star sales and use tax holiday begins on Friday, November 4, and runs through Sunday, November 6, 2011. During the holiday, certain Energy Star-qualified products that meet energy-efficiency guidelines set by the Environmental Protection Agency and the Department of Energy are exempt from sales and use taxes.
Qualified products must have the Energy Star label and include:
- Washing machines
- Central air conditioners
- Air-source heat pumps
- Ceiling fans
- Programmable thermostats
Rentals of the above items are not exempt during the holiday.
An item is eligible for the tax exemption if the customer pays for it during the holiday period and the retailer takes an action to fill and ship the order immediately. Deliveries that are delayed due to a backlog or back order by the seller are still eligible for the exemption if paid for during the holiday. However, if a customer requests delayed shipment, the order is not considered “for immediate delivery” and is not exempt.
Items purchased for use in a business are not covered by the exemption and are subject to applicable sales taxes. Items purchased by contractors who install the products in structures for customers are considered to be purchases for use in a trade or business and will be subject to tax even if purchased during the holiday.
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