The State of New York Intends to Change How You Heat Your House: Where Gas, Oil and Propane Heating Stands in 2026
Quick answer: as of 2026, New York requires most new buildings of seven stories or less to be built all-electric under the All-Electric Buildings Act, with larger new buildings following in 2029. No current state law requires the owner of an existing home to remove a working gas, oil or propane furnace — the state's Climate Act scoping plan recommends phasing out fossil-fuel replacement equipment over time, but that is policy direction, not a mandate on your basement today. What is real right now: the direction of travel is clear, incentives for heat pumps are generous, and the equipment works in the Adirondacks. Here is the careful version.
What the law actually says in 2026
New York's Climate Leadership and Community Protection Act (2019) commits the state to cutting greenhouse-gas emissions 40% by 2030 and 85% by 2050 from 1990 levels. The Climate Action Council's final scoping plan, adopted in December 2022, is the roadmap for getting there, and buildings are a central chapter because heating and hot water are among the state's largest emission sources.
The piece that became law is the All-Electric Buildings Act, passed in the 2023 state budget. In summary, and as of 2026: new buildings up to seven stories permitted after December 31, 2025 must be built without fossil-fuel combustion equipment, and larger new buildings follow at the end of 2028. There are exemptions — for example certain commercial kitchens, manufacturing, emergency backup generation, and situations where the electric grid cannot support the load — and the law has faced legal challenges, so details can change. The scoping plan's further recommendations — phasing out the sale of fossil-fuel heating equipment for existing buildings in the 2030s — have not been enacted as statute as of this writing. The authoritative source is the state itself: nyserda.ny.gov.
What this means if you own an existing home
- Nothing is being taken out of your basement. A working oil or propane boiler can stay.
- The direction is set. The state intends for new homes to be electric and for existing homes to move that way over time; incentives are the tool it is using now.
- The money is on the table today. NYS Clean Heat rebates through NYSEG and National Grid pay more for whole-home conversions off oil or propane, and NYSERDA has additional help for income-qualified households. (The federal tax credit ended December 31, 2025.)
- Replacement moments matter. The scoping plan's own logic — invest when equipment is replaced — is good advice. When the boiler is on its last winter, a heat pump is the replacement to price first.
The plan anticipated one to two million of the state's roughly 6.1 million buildings adopting heat pumps by 2030. Whether the state hits that number or not, it tells you where programs and contractors are focusing — and why the utilities are funding rebates rather than waiting for a mandate to do the work for them.
The North Country reality behind the policy
Statewide policy is written with New York City's gas-heated apartment towers in mind as much as anything, but the Adirondacks are a different case and in some ways an easier one. Almost no homes from Ticonderoga to Tupper Lake have natural gas; the fuels being "phased out" here are oil and propane that already arrive by truck at a volatile price. There is no gas main to abandon and no utility pipeline debate. The question for a North Country homeowner is simply whether a heat pump beats the oil burner on cost and comfort, and for most homes it does. Essex County's electric grid is NYSEG territory and already carries a growing share of hydro, wind and solar; the state's investment in transmission and storage is aimed at exactly the kind of winter-peaking electric heating load the plan envisions.
Two practical implications. First, camps and seasonal homes, which make up a large share of the region's housing, are the easiest conversions — most heat with electric baseboard, and a heat pump cuts that bill by two-thirds while adding air conditioning and app control for freeze protection. Second, the electrical service question is real for some older homes; most retrofits fit on existing 100–150 amp panels, especially when the heat pump replaces baseboard or an electric water heater, but it is worth checking before the boiler fails rather than after. We look at the panel at every estimate.
The timeline at a glance
| Date | What it is | Status as of 2026 |
|---|---|---|
| 2019 | Climate Leadership and Community Protection Act signed | Law; sets 40% by 2030 and 85% by 2050 targets |
| Dec 2022 | Climate Action Council adopts final scoping plan | Policy roadmap; recommendations, not statute |
| May 2023 | All-Electric Buildings Act passed in state budget | Law; applies to new construction |
| Dec 31, 2025 | Federal residential heat pump tax credit expires | Expired; no federal credit in 2026 |
| 2026 | All-electric requirement begins for new buildings up to seven stories | In effect, with exemptions; subject to litigation |
| End of 2028 | Larger new buildings follow | Scheduled |
| 2030s | Scoping plan recommends phasing out fossil-fuel replacement equipment in existing buildings | Recommendation only; not enacted |
Why the plan leans on heat pumps
Heat pumps move heat instead of making it, so they deliver two and a half to three units of heat per unit of electricity; combustion delivers less than one. They produce no on-site emissions and no carbon monoxide, and as the grid adds wind, solar and storage their footprint keeps falling. Operating costs are typically lower than oil, propane or resistance heat despite the higher install price. And one system heats and cools. Learn the basics on what is a heat pump.
How Mitsubishi Hyper-Heat fits an electrifying New York
- Demand. As new homes go all-electric and existing homes convert at replacement, cold-climate equipment that actually works at -10°F is what gets installed. Mitsubishi H2i holds 100% capacity at 5°F and operates to -13°F; H2i Plus / FS models run to -22°F.
- Innovation. Mitsubishi Electric keeps refining the line — the 2025 move to lower-GWP R-454B refrigerant, better defrost logic, app control through the Mitsubishi Comfort app.
- Incentive alignment. Hyper-Heat equipment qualifies for NYS Clean Heat; whole-home conversions earn the higher tier.
- Adaptability. Wall, floor, ceiling cassette and ducted indoor units fit 1800s village houses, lakeside camps and new builds alike; one outdoor unit runs up to eight zones.
- Installer network. Diamond Contractor ELITE dealers like us are trained on the equipment and register the 12-year parts warranty.
Mitsubishi heat pumps vs. traditional HVAC systems
| Mitsubishi Hyper-Heat | Traditional furnace/boiler + AC | |
|---|---|---|
| How it makes heat | Moves heat from outdoor air; no combustion | Burns gas, oil or propane |
| Efficiency | 2.5–3 units of heat per unit of electricity; inverter modulates | Less than 1 unit of heat per unit of fuel; duct losses |
| Installation | Ductless or ducted; no chimney or tank; retrofits older homes easily | Ductwork, venting, fuel storage |
| Zoning | Every indoor unit is a zone | One thermostat unless expensive dampers added |
| Cooling | Built in | Separate air conditioner |
| Emissions | None on site; falls as grid cleans up | CO2 and combustion pollutants |
| Policy direction | Required in new buildings; incentivized in existing | Being phased out of new construction |
We still install RUUD furnaces, boilers and central AC where they are the right answer for an existing home, and we are honest about which case yours is.
What to do now
You do not have to act because of a law. You might want to act because the incentives are here now, the equipment is proven in this climate, and the next time the boiler fails will be the worst week of winter. A free in-home estimate with a load calculation gives you a written price with NYS Clean Heat applied and 0% financing laid out, so the decision is made on your schedule. Read how a Ticonderoga home made the move in our case study, and see the current programs on rebates & savings.
Frequently asked questions
Is New York banning gas, oil and propane heat in existing homes?
No. As of 2026 the All-Electric Buildings Act applies to new construction. The Climate Act scoping plan recommends phasing out fossil-fuel replacement equipment in existing buildings over time, but that has not been enacted as law. Check nyserda.ny.gov for current rules.
When does the All-Electric Buildings Act take effect?
For most new buildings of seven stories or less, permits after December 31, 2025 must be all-electric; larger new buildings follow at the end of 2028. Exemptions exist and the law has faced legal challenges, so details may change.
Do I have to replace my furnace when it breaks?
There is no such requirement as of 2026. When a furnace or boiler reaches end of life, a heat pump is worth pricing first because NYS Clean Heat rebates and lower operating costs make it the better economic choice for most North Country homes.
Will a heat pump really heat a home in the Adirondacks?
Cold-climate equipment does. Mitsubishi Hyper-Heat holds full capacity at 5°F and runs to -13°F, or -22°F on H2i Plus models, and serves as primary heat in homes across Essex County.
What incentives exist for switching in 2026?
NYS Clean Heat rebates through NYSEG and National Grid, NYSERDA programs for income-qualified households and weatherization, Efficiency Vermont across the lake, and 18 months of 0% financing. The federal tax credit expired December 31, 2025.
Talk to us
Want to know what a heat pump would cost and save in your house before the policy question ever comes up? Call (518) 812-1958, request a free in-home estimate, or run the two-minute savings calculator first — finish it before your estimate and we take $250 off the install.