In February 2009, President Obama signed into law the “American Recovery and Reinvestment Act of 2009.” As part of this stimulus bill, a sizeable tax credit was made available to Americans who make energy conservation improvements to their homes.
Not surprisingly, as a result, oven manufacturers have bombarded the advertising channels, pressuring people to buy their new products now and take advantage of this government giveaway. Sounds like a great deal, but you need to think hard about whether it’s the right option for you, a capital improvement like this is a big step. And even with the tax credit, it still requires a significant amount of money from you (at least 70% of the cost is paid directly by you).
So let’s discuss why you should buy a gas oven now. Most people faced with this question will be replacing an existing gas oven. This is natural, they already have all the plumbing and duct work in place and the only new equipment is the furnace (and blower) itself.
The advantages of upgrading your gas oven to a more modern model are remarkable. An important one, and the one promoted by the government, is that they are more efficient (they have to be to get the tax credit). This has a couple of direct effects. One is that they are cheaper to operate. Less fuel for more heat means you’re paying your utility less, and with future fossil fuel prices uncertain, this is a sound investment. Two, higher efficiency means fewer pollutants are released into the atmosphere. If you’re worried about ‘going green’ as so many people are these days, a more efficient gas heater will give you a sense of inner turmoil.
A newer oven will also be more reliable. Repair costs aside, ovens only break when you need them, so one that doesn’t break means you never have to pull out those extra blankets and sweaters.
Modern ovens can also be more effective at maintaining a consistent temperature in your home. This results in a more comfortable environment.
For people who are considering purchasing a gas heater to replace an existing system, all of the above points are actually even more relevant (going from electric heating to gas heating will result in big savings on your energy bill), but the initial investment is also likely to generate higher costs. Whether it’s just additional plumbing or you need duct work done, the installation fees will add up. You need to have a detailed conversation with a contractor you trust and a spreadsheet to figure this kind of thing out. But if you’ve been planning to make the jump to gas heating for a while, it’s probably better to do it now than later thanks to the tax credit.
If you are building a new home and simply choosing what type of heating to install, a gas heater will be the right choice for the vast majority of people. As long as gas is reliably available in your area, it’s generally cleaner, easier, and cheaper (or at least two of those three) than any of the alternatives.
All of that seems to suggest that this is the right time to make that France purchase. If you already have a gas heater and it is more than 10 years old, it almost certainly is. However, if you have a newer furnace, you should seriously think about other ways to get the tax credit (maybe install some insulation or an energy efficient roof or something).
If you are switching to gas from another type of fuel, then this is a very good time to make the switch. Gas heating will only become more attractive in the future.
Don’t feel like you have to rush into a decision. He has until December 31, 2010 to install his new equipment and be eligible for the tax credit. That said, don’t drag your feet too long. It would be unfortunate if some unanticipated last minute delay cost you that $1,500 credit! Also, contractors will be very busy in the last quarter of 2010. The summer of 2010 is probably the ideal time to do your new installation.
