The sales-tax holiday on energy-efficient products starts today, 10/5/07, and will run through Monday, 10/8/07.  The official cap on the tax-free purchases is $2,500 and is only good on certain products that bear the Energy Star logo, which denotes that it has received a blessing from the Federal government as being energy-efficient.

Here is a list of products that are eligible, from the VA Department of Mines, Minerals, and Energy site:

  1. Ceiling  Fans
  2. Compact  Fluorescent Light bulbs (CFLs)
  3. Dehumidifiers
  4. Dishwashers
  5. Programmable  Thermostats
  6. Refrigerators
  7. Room  Air Conditioners
  8. Clothes Washers

Don’t forget that there are also Federal tax credits on certain energy-efficient purchases, regardless of the state sales-tax holiday.

There are quite a few exceptions to the tax-free sales, for example commercial-grade items and computers do not fall under the state program.  Similar to the back-to-school sales-tax holiday, individual retailers can opt to pay sales tax for consumers on some products that are not covered officially.

Regardless, this is a great way to kick-start some tax-payers into being energy-efficient without breaking the bank or setting up ongoing subsidies.  I applaud the state for enacting the sales-tax holiday.

At the same time, I hope that this does not become a free-for-all in having sales-tax holidays for every pet project that comes along.  It’s exciting and newsworthy if there are a couple of sales-tax holidays each year, but the novelty loses its power to drive purchases if there is a sales-tax holiday declared once a month.

See also:  Effects of VA Sales Tax Holiday, posted 8/9/06