// policy impact on demand

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Heat pump demand survives loss of federal tax credits

The heat pump market has held steady after federal tax credits expired, sustained by rising utility costs, improved product reliability, and state incentives. Consumer adoption has moved beyond subsidy-dependent early adopters into mainstream economics. This means the decarbonization transition is shifting from policy-driven spending to genuine cost-parity competition, which will determine which technology vendors and installation networks capture durable market share instead of those riding rebate cycles.