The TV Converter Box Coupon Program

Snapshot:

• COUPONS ARE NO LONGER BEING ISSUED!  July 31, 2009, was the last date to request converter coupons.

• All coupons will expire by the end of October, 2009. If you still have active coupons, use them before they expire!
  

• Congress established the coupon program to help OVER-THE-AIR TV viewers watch digital TV on non-digital (analog ) TVs. 
  

• Each coupon can be applied to the purchase of one "eligible" digital TV converter box.

• Most electronics retailers that are selling digital converters will accept the coupons.
  

• Coupons are only good for 90 days from their mailing date, and then they expire and are useless. 
  

The transition to all-digital broadcasting for FULL POWER TV stations was required by law,  so the U.S. Congress wanted to be sure that viewers who watch TV OVER-THE-AIR with an ANTENNA could continue to watch the DIGITAL channels on their older, ANALOG TVs.  To support this, Congress created a "TV Converter Box Coupon Program."  The program allowed each U.S. household to request up to two coupons worth $40 each.  Each coupon could be applied toward the purchase of one "eligible" digital TV Converter box. 

How many coupons were available?  In the initial program, a total of 33.5 million coupons were funded with a $1.34 billion fund.  All those coupons have been redeemed or have expired.  The U.S. Stimulus Bill provided another $650 million to the coupon program, which included support for 12.25 million more coupons. 

How many coupons were requested?  As of the final tally on Sept 16, 64 million coupons were requested by 34 million households.  Over 64 million coupons were mailed out.  Over 35.6 million have been redeemed to purchase a converter box.  2.5 million coupons are still active and 27 million have expired.  About 55% of the coupons are being redeemed before they expire.  In the final weeks of the program, the coupon agency was getting an average of 40,000 coupon requests every day. 

What TVs need a converter box?  A TV needs a converter box if it is used for watching local TV stations over-the-air, using an antenna, and it is not connected to a SUBSCRIPTION TV service like CABLE TV or SATELLITE TV, and it does not have a digital or "ATSC" tuner.  There may be TVs like this even in homes that have cable TV or satellite TV on some TV sets.  Some TV stations, called "LOW POWER" stations or "TV TRANSLATORS," will not change to digital, and analog TVs will continue to receive those stations. 

What are the limits on coupons?  Coupons are active for only 90 days, and the "countdown" starts when they are mailed.  They have an expiration date on them, and once they expire, they will be worthless.   If you plan to use your coupon, use it before the expiration date!  Also, if the cards are lost or stolen, they cannot be replaced. 

Coupons have no cash value and no other use except for the purchase of eligible converters. 

If you plan to buy a converter at a local store, call electronics retailers near you ahead of time to make sure they have converters in stock.  Some stores, such as Radio Shack, will let you make a converter payment at a store, then they ship the converter directly to your home.

What can I use the coupons for?  Converter coupons can be applied toward the purchase of "eligible" TV converter boxes. These are converter boxes that the government has qualified for purchase using the coupons.  They have all the basic functions required to watch digital TV channels on an analog TV set, including a remote control.  To see a list of approved converter boxes, click here.  For more information on converter boxes, see the section "Digital TV Converter Boxes" or click here. 

How do I use a coupon?  You need to find a store that sells "eligible" converter boxes (also called "Coupon-Eligible Converter Boxes," or CECBs). The store must be a retailer that is participating in the coupon program.  These stores will usually advertise this in their TV or TV accessories departments.  Most major electronics stores are participating in the program. There are also participating retailers selling converter boxes in their catalogs or online.  Not all electronics retailers are participating in the coupon program; each store makes its own decision on that.  For a list of participating retailers, click here. 

You can use one coupon for the purchase of one eligible converter box.  The $40 coupon value will be applied to the basic price of the box.  If the box costs more than $40, you must pay the difference.  If the box costs less than $40, you can use the coupon for the full price, but you will not get a refund.  You will have to pay any taxes on the purchase. 

When you buy a converter box, you are the owner, and any store and manufacturer warranties will apply.  Keep your warranty information and receipts.  There are no subscriptions required to use the converter box. 

Once you have used a converter coupon to make a converter purchase, the coupon is deactivated.  It is then worthless and can't be reused.  Keep it as a souvenir of the biggest change to a broadcasting system in history!

The converter coupon program is described in detail at www.dtv2009.gov.  

That's the basic information!  For the really curious, here is more information about converter box coupons.

Who is running the coupon program?  The TV Converter Box Coupon Program is being managed by the National Telecommunications and Information Administration (NTIA), which was given this assignment in the 2005 digital TV transition act.  The NTIA is part of the U. S. Department of Commerce, and it is the President's chief resource on telecommunications and information policy issues.  For more information on the NTIA, click here.  

Can I give  a coupon to someone who is not a member of my household?   Yes, you can give your coupon to others , such as those who can't get coupons of their own, or who have coupons that have expired.  Some faith and community groups are asking their members to apply for coupons which will then be donated to families or organizations (firehouses, shelters, prisons, etc.) that can't apply on their own.

Can I sell the coupons I get?   It is illegal to sell the coupons or tamper with or duplicate them.  However, coupon owners can donate their coupons to others.

If I buy a converter with my coupon, can I sell or give the converter away?  Yes.  When you purchase a converter, it is your personal property and you can use it any way you like.  It is not assigned to you or your address, and it can be used anywhere.  The government does not track it. 

Do I need a coupon to buy a converter box?  No. Converter boxes are simply TV accessories sold by retailers; they can be bought by anyone, anytime, and are subject to store and manufacturer warranties.  If you're in a hurry to get a converter box, or have more than two TVs that need converter boxes, you can purchase them without using coupons. 

If I've already bought a converter box, can I get a coupon and take it to the store for a rebate?  No.  The coupon program is not a rebate program.  You can only use a coupon at the time of purchase, so you need to have a coupon before buying a converter. 

Can coupons be used to buy anything besides an eligible converter box?  No.  No DVDs, no DVRs, no TVs. Just eligible converters. 

If I return a converter that I bought using a coupon, will I get a cash or credit refund?  The retailer, depending on their policy, may give you credit towards another eligible converter, but you will not get back the coupon value of $40 in cash or credit. 

Why doesn't the government pay the full cost of converters, since it is requiring the transition to digital TV?  Congress created the coupon program as a shared effort with consumers.  With consumers having to apply for coupons and pay the price difference over $40, the program helps ensure that truly needy households are getting the benefit of the coupons. Plus the coupon program allows consumers to choose whatever converter model they want, which encourages many manufacturers to produce converters. 

How does the $40 value of the coupons get used up?  For each coupon that a store accepts in payment for an  eligible converter, the store gets paid a reimbursement from the converter program for the actual cost of the converter, up to $40.  The reimbursement comes out of the converter program fund. 

Do expired or unused coupons take money out of the treasury?  No.  If a coupon expires before it is used, then no retail store has to be reimbursed for the coupon purchase, and the money that has been reserved for the coupon is released back to the converter fund.

So are my taxes being used to pay for coupons so other people can keep watching television?  Congress expected that the coupon program would be paid for from a fraction of the funds earned from the auction of the TV channels that will be opened up after the analog channel shutoff.  And that has happened: bids on the new channels amounted to nearly $20 billion, well above the current coupon program allocation of $2 billion. 

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CAPITALIZED WORDS are defined in the Digital TV Glossary.