Heat Pump vs. Gas Boiler/Furnace Calculator
Compare the true 20-year cost of a heat pump against a gas furnace or boiler. Includes state HEEHRA rebate potential, real state gas and electricity rates, and annual CO₂ savings.
Standard split-system, works to ~5°F, most common choice
Standard efficiency gas furnace
Federal 25C Heat Pump Credit — Expired Dec 31, 2025
⚠️ The federal 25C heat pump credit expired December 31, 2025. It is not available for 2026+ installations. If your system was installed in 2025, you may still claim up to $2,000 on your 2025 tax return. State HEEHRA rebates may still apply depending on your state and income — check your state energy office.
The calculator below shows the credit amount for reference (as of 2025). Adjust your net cost accordingly for 2026 installs. Always consult a tax professional.
Can a heat pump fully replace my gas furnace?
In most US climates, yes. Modern cold-climate ASHPs operate efficiently down to -13°F. Only in extreme northern climates (zones 6-7) might a backup electric resistance strip or dual-fuel system be needed for the coldest days.
What was the IRA 25C credit for heat pumps?
The IRA Section 25C heat pump tax credit expired December 31, 2025. It previously provided a 30% federal tax credit (non-refundable) for qualifying heat pumps, up to $2,000 per year. If you installed a qualifying heat pump in 2025, you may still claim this credit on your 2025 tax return. For 2026 installs, check your state energy office for available HEEHRA rebates based on income.
Do I need to upgrade my electrical panel for a heat pump?
Most homes with a 200-amp panel do not need an upgrade. Older homes with 100-amp panels may need a panel upgrade (which also qualifies for a $600 IRA credit). A licensed electrician can assess your home.
How does cooling efficiency factor into the comparison?
Heat pumps provide both heating and cooling in one system. A gas furnace must be paired with a separate central air conditioner. This calculator includes the estimated AC installation cost and cooling energy in the gas system total.