Rebate program has short timeline

Now would be a good time to be in the market for certain appliances for your home. Right now. This weekend. Do not delay. It is urgent.

The Nebraska Energy Efficient Appliance Rebate Program provided $1.7 million in customer rebates on six qualifying Energy Star products: central air conditioners, clothes washers, refrigerators, dishwashers, air source heat pumps and natural gas propane furnaces. Rebates range from $100 to $250, depending on the efficiency of the appliance purchased.

But don't procrastinate, there's a good chance the funds will be completely used up by the time the weekend is over.

The appliances had to be purchased on or after July 6, 2010 by residents of Nebraska. They are awarded on a first-come, first-served basis, and as of this morning less than $170,000 was still available. The program will continue until all of the money runs out.

Eligible Nebraska retailers are required to submit the consumer rebate information online, and then print and mail the application to the processing center in Saginaw, Michigan. Upon approval and validation, the rebated amount will be mailed to the consumer.

A similar program in Iowa began on March 1 and provided $2.8 million in rebates. By 4 p.m. on that same day, all of the funds had been awarded.

The program is intended to stimulate the economy by encouraging consumers to replace older, less-efficient appliances with new, more energy-efficient models. It is funded through the American Recovery and Reinvestment Act of 2009.

Obviously, the program has caused some consumers to take action that they may have put off if not for the rebate. But one has to question whether or not a rebate that will only benefit a handful of consumers over a very short period of time is really the best way to stimulate the economy.

Just like Cash for Clunkers and the Home Buyer's Tax Credit, these programs incentivize smart consumers to take advantage of a one time deal. What probably helps as much as anything is the media blitz that accompanies the programs. Every newspaper and television station in the country carried stories and editorials that brought awareness to the programs. Car dealers, realtors, and retailers used the programs in advertising their businesses, and encouraged shoppers to buy now. The fact that there is only a limited pool of funds, or a deadline to the program, created a sense of urgency in the minds of consumers.

The short-term boost is certainly welcome. But consumers need confidence that their jobs are not in jeopardy; that wage freezes are temporary and will not continue to erode their standard of living; and that their retirement and other investments are safe. Those are the things that will put consumers back in the mood to splurge on something new.

Until those things happen, expect to see continued "gimmicks" that create a sense of urgency for the consumer to part with his or her hard-earned wages.