In February of 2009, President Obama signed into law the “American Recovery and Reinvestment Act of 2009″. As part of this stimulus bill was a hefty tax credit made available to Americans who make energy conserving improvements to their home.

It is no surprise that as a result the furnace manufacturers have bombarded the advertising channels pressuring people to buy their new products now to take advantage of this gift from the government. It sounds like a great deal, but you should put some real thought into whether it is the right choice 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 by you directly).

So let’s discuss why you should buy a gas furnace now. Most people facing this question will be replacing an existing gas furnace. 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 furnace to a more modern model are notable. A big one, and the one being touted 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 less to your utility company, and with the uncertainty of fossil fuel prices in the future, this is a good investment. Two, greater efficiency means less pollutants are put into the atmosphere. If you care about ‘being green’ as so many people do these days, a more efficient gas heater will give you a fuzzy feeling inside.

A newer furnace will also be more reliable. Repair costs aside, furnaces only break when you need them, so one that doesn’t break means you never have to bust out those extra blankets and sweaters.

Modern furnaces can also be more effective at maintaining a constant temperature in your home. This translates to 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 (moving from electric heat to gas heat will bring huge savings in your energy bill), but the initial investment also likely brings greater costs. Whether it is just additional plumbing or if you need duct work done, the installation fees are going to add up. You should have a detailed talk with a contractor you trust and a spreadsheet to sort these sorts of things out. But if you’ve been planning on making the jump to gas heat for a while already, it is probably better to do so now rather than later thanks to the tax credit.

If you are building a new home and are simply choosing what sort of heat 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 is 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 have a gas heater already and it is more than 10 years old, then almost certainly it is. If you have a newer furnace, though, you should seriously think about some other ways to get the tax credit (maybe install some insulation or an energy efficient roof or something like that).

If you’re moving to gas from another sort of fuel, then this is a very good time to make the switch. Gas heat is only going to become more attractive in the future.

Don’t feel you have to rush into a decision. You have until December 31, 2010 to install your 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 ,500 credit! Also, contractors are going to be very busy in the last quarter of 2010. The summer of 2010 is probably the ideal time to do your new installation.

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