Energy efficient homes relieve the stress of fluctuating energy costs. Creating an energy efficient home often involves replacing an old oil burning furnace or boiler. The federal government encourages homeowners to make their homes as energy efficient as possible. To this end, the federal government has implemented programs to ease some of the financial burden associated with oil boiler replacement. These programs include tax credits, rebates and financing.
The federal government offers a tax credit of up to $1,500 or 30 percent of the cost of the new furnace if it is a fuel efficient model. This tax credit can only be used on existing primary residences. Claim this tax credit by filing IRS Tax Form 5695 when filing your taxes. Save your purchase receipts. The manufacturer of the new boiler needs to provide a statement that indicates the new product is fuel efficient. This tax credit is not only for upgrading oil furnaces. It can be used on purchases of energy efficient air cooling systems, insulation, roofing and exterior window replacement.
Rebates for Energy Star Appliances
The Environmental Protection Agency (EPA) and the U.S. Department of Energy created this program to encourage homeowners to become more energy efficient. The federal government has appropriated money for each state specifically to fund an Appliance Rebate Program. The program will be in effect until the money runs out. The state dictates who is eligible for the rebate. The rebate amounts for purchasing an energy efficient Energy Star furnace range from $50 to $500.
Programs to Refinance Energy Efficient Homes
The federal government also provides help with obtaining financing for remodels. Financing programs are available to help homeowners remodel their homes to become more energy efficient. This type of financing can be obtained through government insured loan programs. To qualify for one of these loans, homeowners usually need to obtain a Home Energy Rating (HER) by a certified rater. This rating will recommend energy saving options that may include an oil boiler replacement. Details about this type of financing can vary by state.
- Photo Credit picturegarden/Photodisc/Getty Images
The Average Furnace Replacement Cost
The replacement cost of a furnace depends on the size, type of furnace, geographic location and if any duct work or if...
How to Get Furnace Rebates
To encourage homeowners to be more energy efficient, power companies across the country offer rebates on some home appliances, including furnaces. When...
How to Finance a Furnace
An old gas, oil-fueled or electric furnace can cost a lot of money in energy and repair bills. Update your home with...
Tax Credit for a Furnace Replacement
Congress and the Internal Revenue Service, or IRS, promote the replacement of current appliances with those that are more energy efficient than...
Federal Grants for Energy-Efficient Furnaces
A great deal of the energy consumed in running a facility or powering a home is used for heating. In homes, for...
Grants for New Boilers
Several programs sponsor grants for purchasing and installing new residential and commercial boilers. Grants cover the costs associated with the construction and...