Heat Pump vs. Gas Boiler/Furnace Calculator
Compare modeled 20-year heat-pump and gas-system costs under your entered assumptions. 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.
Figures below reflect 2026 installs with no federal 25C credit applied. If you installed in 2025, subtract your eligible credit from the net cost. 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?
Panel capacity depends on the home's existing loads and the selected equipment; a licensed electrician should assess it. A panel upgrade qualified for a $600 Section 25C credit only when installed with qualifying property placed in service by December 31, 2025; that credit has expired. HEAR panel-upgrade rebates (up to $4,000, income-qualified) may apply in states whose Home Energy Rebate program is open and funded. This calculator applies no federal 25C credit to a 2026 installation.
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.