CIRCUIT Act

This bill would expand an existing federal tax credit for advanced manufacturing to cover distribution transformers. It adds these transformers to the list of eligible components and lets manufacturers claim a credit equal to 10% of their costs to produce them. A “distribution transformer” uses the same definition as in federal energy law.

Key points:

• Who is affected: Companies that manufacture distribution transformers.
• What changes: A new 10% production cost tax credit for these transformers under the advanced manufacturing credit.
• When: Applies to components produced and sold starting 90 days after the bill becomes law.