Texans can enjoy a sales tax break this Memorial Day weekend, thanks to the state’s Water-Efficient Products and Energy Star Sales Tax Holidays. Running from Saturday, May 25 to Monday, May 27, this tax holiday allows residents to purchase certain energy-efficient and water-conserving products without paying sales tax.
Qualifying Energy Star Items
During the Energy Star tax holiday, you can buy, lease, or rent an unlimited number of qualifying items without needing an exemption certificate. The following Energy Star-labeled products are eligible:
- Air conditioners (priced at $6,000 or less)
- Refrigerators (priced at $2,000 or less)
- Ceiling fans
- Incandescent and fluorescent light bulbs
- Clothes washers
- Dishwashers
- Dehumidifiers
Non-Qualifying Energy Star Items
It’s important to note that some Energy Star-labeled items do not qualify for the sales tax holiday, including:
- Water heaters
- Clothes dryers
- Freezers
- Stoves
- Attic fans
- Heat pumps
- Wine refrigerators
- Kegerators
- Beverage chillers
Water-Efficient Products
Similar to the Energy Star program, there is no limit on the number of qualifying water-efficient products you can purchase tax-free. Any product displaying a WaterSense label or logo is eligible. Additionally, the following water-efficient and water-conserving products qualify if used for residential purposes:
- Soaker or drip-irrigation hoses
- Moisture control systems for sprinklers or irrigation
- Mulch
- Rain barrels and alternative moisture collection systems
- Permeable ground cover surfaces
- Plants, trees, and grasses
- Water-saving surfactants
- Soil and compost
Additional Information
When determining eligibility for tax exemption, consider the total sales price of air conditioners and refrigerators, including delivery, shipping, handling, or installation charges. The overall price must remain within the specified cap for the item to qualify for the tax break.
The Energy Star program, initiated in 1992 by the U.S. Environmental Protection Agency and the Department of Energy, aims to promote economic growth and environmental protection. The Texas Legislature later established the sales tax holiday, and the Texas Comptroller’s office estimates that shoppers will save $15 million in state and local sales tax this year.