Will The Government Pay for Your Heating Costs?

In this article...
  • If you're having difficulty paying for heating costs, you may qualify for government assistance. Find out more about any possible oil boiler government grants.
Woman using calculator to determine costs

An easy way to make a home more energy efficient is to replace the existing heating system with a more modern unit. In some cases, the federal government may provide assistance with replacing the main unit of a heating system, including oil boilers. If you own a home that uses an oil boiler as its heat source, you may be interested in financial assistance, such as oil boiler government grants.

Tax Credits 

The U.S. Department of Energy offers specific tax credits for homeowners who upgrade their homes with more energy-efficient heating and cooling systems. Oil boilers fall under the category of the Nonbusiness Energy Property Tax Credit. The manufacturer you purchase your new oil boiler from can tell you whether or not your unit meets specific standards set by the Department of Energy.

This tax credit was extended through December 31, 2020, but it's unclear if it will be extended beyond that date.


A federally-funded grant program called LIHEAP, or the Low Income Home Energy Assistance Program, helps low-income families meet their heating expenses. 

The federal government earmarked $5.1 billion for the program in 2010, and the operation of it is coordinated through the Department of Health and Human Services. All 50 states and Washington D.C. are provided with funds from this program.

In order for families or individuals to be eligible for LIHEAP funding, your total household income can't exceed 150% of the poverty level, or 60% of your state's median income.

LIHEAP is generally used to help pay for:

  • Heating bills
  • Weatherization
  • Energy-related minor home repairs

Therefore, LIHEAP may not help you pay for the cost of a new oil boiler. But, if you need to make an energy-related repair to it, it might help offset those costs.

To find out if you're eligible for LIHEAP, contact your local LIHEAP office, which is typically within your state's Department of Health and Human Services. 

Even if you are qualified for LIHEAP, there is no guarantee you will receive assistance. Whether or not you receive help depends on the amount of available LIHEAP funds available for the entire year.