Grants to Convert Fuel Oil Furnaces to Wood Burning Furnaces

2009 Recovery Act

• The American Recovery and Reinvestment Act of 2009 provides grants of up to $15,000 through the Department of Housing and Urban Development for energy improvement plans. These grants are intended to provide financial support for energy efficiency improvements in multiple-family, low income housing units. Property owners who want to upgrade an older fuel oil burning furnace can apply to install a high-efficiency biomass burning unit its place. If your proposal is accepted, this grant can cover up to $15,000 worth of expenses.

Weatherization

• Weatherization assistance programs are run by states and are automatically available to citizens receiving funds from Supplemental Security Income, or Aid to Families with Dependent Children. States often give preference to applications from citizens over 60 years old, families with disabled individuals or families with children. Most states only provide weatherization assistance for families with an average annual income that's 60 percent lower than the median income for the state, or 200 percent lower than the national poverty level. This program is designed to improve the overall energy efficiency of your home and can include improvements to your heating system, sealing air leaks and adding insulation.

Rural Development

• The United States Department of Agriculture provides financial grants for citizens in rural areas who want to improve their heating systems. High efficiency biomass burning stoves and other improvements designed to increase the energy efficiency of rural dwellings and work areas are available for agricultural producers who obtain at least 50 percent of their income from agriculture. These grants can cover up to 25 percent of the total cost of the project with a maximum limit of $250,000.

Federal Tax Credit

• The federal government offers a tax credit for any citizen who purchased a qualifying wood burning stove during 2011. The maximum available credit for wood stove installation is $300. This tax credit has a limit of $500 for any energy improvements claimed between 2006 and 2011. Only wood burning stoves with a thermal efficiency rating greater than 74 percent are eligible for this tax credit.