OLR Report 2013-R-0369 describes existing and proposed incentives for people to convert to natural gas from other fuels.
While there currently are no incentives specifically for converting to natural gas from other fuels, there are incentives for buying energy efficient heating equipment. Such equipment is eligible for federal income tax credits and rebates. The tax credits apply to equipment bought in 2013. There are also low-interest loan programs that can be used for such equipment. In addition, Energy Star® rated residential gas furnaces and boilers are exempt from the state sales tax.
Legislation passed this session (PA 13-247 and PA 13-298) requires the establishment of programs to help customers finance replacement heating equipment. These programs could be used to finance gas heating equipment that replaces oil equipment; they also could be used by customers who do not switch fuels.
PA 13-298 also changes how gas system expansions are financed, which potentially will make it less expensive for some customers to switch from oil to gas. It also requires the gas companies to develop a gas system expansion plan. Under this plan, the companies have proposed several incentives for new gas customers.
For more information, read the full report.
