S.3722, the Lowering Home Energy Costs Act, is an early-stage bill (referred to Finance Committee January 29, 2026) that extends three expiring residential energy tax credits (25D solar/battery, 45L efficient new homes, 25C efficient home improvements) through 2032. The bill has no near-term market impact — it is far from passage. If enacted, the most direct beneficiaries are residential HVAC manufacturers Carrier ($CARR) and Trane ($TT) via restoration of the 25C heat pump/AC credit, and residential solar equipment makers Enphase ($ENPH) and SolarEdge ($SEDG) via extension of the 25D solar credit. This bill extends existing policy; it creates no new spending, only continuation of tax credits that were set to expire.
→ Same as Carrier: homeowners receive a 30% tax credit (up to $2,000 for heat pumps, $600 for AC/furnaces) through 2032, reducing effective cost and accelerating replacement decisions. The 25C credit primarily drives the replacement market (as opposed to new construction), which is the larger segment for residential HVAC.