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description: Heat pump sales in the US continue to grow despite the expiration of a key $2,000 tax credit at the end of 2025. Shipments were flat from December to January...
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# Why heat pumps are still so hot in the US

**[MIT Technology Review](https://daily.dev/sources/technologyreview)** · 5 min read · 1 upvotes · 0 comments

## Summary

Heat pump sales in the US continue to grow despite the expiration of a key $2,000 tax credit at the end of 2025. Shipments were flat from December to January and have risen since, following and slightly exceeding seasonal trends from prior years. An analysis by UC Berkeley energy economist Lucas Davis suggests the US heat pump market is strong enough to sustain itself without tax incentives. Heat pumps have outsold gas furnaces in the US for four consecutive years and are outpacing natural-gas furnace sales by 32% in Q1 2026. The trend is global, with China and Germany also seeing strong heat pump adoption.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://www.technologyreview.com/2026/07/16/1140505/heat-pump-sales-us>

## Questions this post answers

### Did US heat pump sales drop after the federal tax credit expired at the end of 2025?

No, heat pump sales continued rising even after the up-to-$2,000 US federal tax credit ended on January 1, 2026. Shipment data from the Air Conditioning, Heating, and Refrigeration Institute shows a gradual increase from winter into spring 2026, a seasonal pattern that was actually stronger than in previous years, and heat pumps outpaced natural-gas furnace sales by 32% in the first quarter of 2026.

_Track how policy shifts reshape home electrification decisions with daily.dev._

### How did heat pump sales trends compare to EV sales after their respective tax credits expired?

EV sales spiked ahead of the $7,500 federal tax credit's expiration on September 30, 2025, then fell sharply afterward before starting to normalize. Heat pump sales behaved very differently: they kept rising after their tax credit ended January 1, 2026, suggesting the incentive was not the primary driver of consumer demand for heat pumps, unlike with EVs.

_Compare how incentive-driven markets diverge by following clean-energy adoption data on daily.dev._

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