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Appliance industry banking on stimulus: with residential construction and remodeling so slow, production Of home appliances is moribund. But appliance manufacturers, and their metals suppliers, are hopeful the federal stimulus package will turn around the economy, as well as demand for new energy-efficient ranges, refrigerators and laundry machines.

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FOR THE BELEAGUERED APPLIANCE market, one phrase provides a ray of hope--economic stimulus.

Beaten by the decline in housing starts and the financial crisis that has made access to credit a pipe dream for many consumers, the appliance industry was encouraged when the federal stimulus bill signed in February contained provisions for the appliance market. The bill includes $300 million to fund the Energy Efficient Rebate Program, designed to both encourage the purchase of appliances and cut down on domestic energy use. Through the program, consumers will receive rebates to help offset the higher cost of more energy-efficient Energy Star-rated appliances, including refrigerator-freezers, dishwashers and clothes washers.

"This has been our top legislative focus. Thank goodness $300 million made it into the final bill," says Jill Notini, spokesperson for the Association of Home Appliance Manufacturers in Washington, D.C. "It helps the manufacturers in terms of a major spur in spending. And it helps the consumers short term and long term, with an initial rebate and long-term energy savings."

Money for the rebate program will be funneled through and administered by the states. Some states already have programs to spur purchase of Energy Star appliances, while others must create them. For those with existing programs, the states could choose to expand the dollar amounts available to consumers or keep the program going longer.

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Energy Star appliances are defined as products that perform a...

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