Legislation to Expand Production of Electric Distribution Transformers
Feb. 12, 2025
The Credit Incentives for Resilient Critical Utility Infrastructure and Transformers Act is expected to expand the Advanced Manufacturing Production Credit (45X) passed as part of the Inflation Reduction Act to include distribution transformers to strengthen the domestic energy economy.
U.S. Senators Catherine Cortez Masto (D-Nev.) and Jerry Moran (R-Kan.) have introduced the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act to support the production of electric distribution transformers.
The legislation is expected to expand the Advanced Manufacturing Production Credit (45X) passed as part of the Inflation Reduction Act to include distribution transformers to strengthen the domestic energy economy. The U.S. has a record demand for power transformers and current production is unable to match the requirement from new housing, data centers and more.
“Nevada is leading the way in 21st Century energy technologies and manufacturing, and we need more distribution transformers to connect new sources of energy and power to the grid,” said Sen. Cortez Masto. “Our bipartisan legislation to boost the production of distribution transformers is critical for lowering energy costs, supporting energy resiliency, and strengthening our national security.”
“Demand for energy and power is continuing to grow in Kansas and across the country as housing, businesses and transportation needs expand,” said Sen. Moran. “Creating a tax credit to incentivize domestic production and manufacturing of distribution transformers will help the United States move closer to energy independence, provide jobs and keep up with rising demands.”
