US Heat Pump Sales Remain Strong After Tax Credit Ended

First-quarter sales outpaced natural-gas furnaces by 32%, even after a key federal heat-pump tax credit ended at the close of 2025.

US heat-pump sales continued to rise in early 2026 after a key federal tax credit for the appliances ended with the close of 2025.

Heat-pump sales have doubled over the past 15 years, according to a new report. In the first quarter of 2026, heat pumps outpaced natural-gas furnaces by 32%.

Heat pumps use electricity to move heat from one place to another rather than generating it through combustion. Many systems can also operate in reverse to cool buildings.

The equipment can be highly efficient. While heat pumps can cost more to buy and install than gas furnaces, they are generally cheaper to operate than gas or oil furnaces and other electric-heating systems.

The first-quarter figures are notable because incentives have been a major tool for encouraging heat-pump adoption. The available data show that sales momentum has continued immediately after the tax credit’s expiration, though they do not establish how the end of the credit will affect demand over the rest of 2026.