After all the grouching I have done about homebuyer tax credits, I must admit that I have finally hit the stimulus windfall.
My AC isn't working and needs to be replaced - and until the end of this year there is a $1500 federal tax credit from the stimulus bill if I replace it.
Am I receiving a windfall because it happened to break this year rather than next year? Yes. Is it actuallly stimulating any economic activity or energy savings? Maybe.
Without the tax credit, I may have opted for a costly repair job rather than replacement. And I had to bump up to a slightly more energy efficient system than I might have otherwise chosen to get the credit. I probably would have made these choices without the tax credit incentive, but the presence of the tax credit made replacing with an energy efficient unit the easy choice.
What do I plan to do with my $1500 rebate? I will get it on next year's tax refund, so it isn't exactly timely stimulus, but I suspect I will pay down debt.