This bill expands a tax credit to include costs for producing distribution transformers, encouraging more manufacturing in this area.
Credit Incentives for Resilient Critical Utility Infrastructure and Transformers Act or the CIRCUIT Act This bill expands the advanced manufacturing production tax credit to include up to 10% of the cost to produce transformers that have an input voltage of 34.5 kilovolts or less, have an output voltage of 600 volts or less, and are rated for operation at a frequency of 60 hertz (i. e., distribution transformers). As background, the advanced manufacturing production tax credit (part of the general business tax credit) allows a tax credit for certain component parts (e. g., battery cells, solar modules, and inverters) and critical minerals (e. g., aluminum, lithium, and nickel) that are produced in the United States or a U.S. possession and sold generally to an unrelated third party for use in clean energy equipment. (Some exceptions apply.)
