The CIRCUIT Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. No further actions are scheduled at this time.
Legislative Progress
Senate
House
President
Law
Could go either way
This bill has support from both parties and addresses a major supply chain issue, but it may need to be added to a larger tax package to pass.
Key Points
This bill creates a new tax credit for companies that build distribution transformers in the United States. These transformers are the gray boxes often seen on utility poles that help deliver electricity to homes and businesses.
Manufacturers would receive a tax credit equal to 10 percent of what it costs them to make each transformer. This incentive aims to encourage more production within the country to help strengthen the national power grid.
By increasing the supply of these parts, the policy hopes to reduce long wait times for utility companies trying to repair or upgrade local electric systems. This could lead to more reliable power for everyday citizens.
The new tax rules would start applying to transformers made and sold about three months after the bill is signed into law.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
2 milestones2 actions
Feb 6, 2025Senate
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Feb 6, 2025
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
