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HR 4128119th CongressIn Committee
CIRCUIT Act
Introduced: Jun 25, 2025
Civil Rights & Justice
Standard Summary
Comprehensive overview in 1-2 paragraphs
The CIRCUIT Act would extend the federal advanced manufacturing production credit (Section 45X of the Internal Revenue Code) to encompass distribution transformers. Specifically, it adds a new 10% credit for the costs a taxpayer incurs in producing distribution transformers, and it includes distribution transformers in the list of property eligible for the credit. The definition of “distribution transformer” is tied to the meaning used in the Energy Policy and Conservation Act. The expansion would apply to components produced and sold 90 days after enactment. The bill is named the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers Act (CIRCUIT Act).
Key Points
- 1Adds distribution transformers to the list of eligible property for the advanced manufacturing production credit (Section 45X).
- 2Creates a new credit amount: 10% of the costs incurred by the taxpayer to produce a distribution transformer.
- 3Provides the statutory definition of “distribution transformer” by cross-reference to the Energy Policy and Conservation Act (EPCA) section 321(35).
- 4Effective date: applies to components produced and sold after a date 90 days after enactment.
- 5Short title: CIRCUIT Act (Credit Incentives for Resilient Critical Utility Infrastructure and Transformers Act).
Impact Areas
Primary group/area affected: Domestic manufacturers of distribution transformers and other advanced manufacturing producers who could claim the 45X credit, with a new specific incentive for transformers.Secondary group/area affected: Utilities and grid operators that rely on distribution transformers, potentially benefiting from a more resilient and potentially domestically produced supply chain.Additional impacts: IRS/Tax administration will need to apply the new 10% transformer-specific credit within Section 45X rules; taxpayers will need to track costs for transformer production to qualify. The policy signal aims to bolster resilience of critical utility infrastructure by expanding domestic production incentives.
Generated by gpt-5-nano on Oct 7, 2025