S 448
Circuit act
Circuit Act
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Bill overview
This bill, the Circuit Act, expands a tax credit available to manufacturers of certain clean energy components. Specifically, it adds distribution transformers to the list of eligible items that qualify for a 10% tax credit on their production costs. These transformers must meet specific voltage and frequency requirements and be produced in the United States or a U.S. possession. The changes are designed to encourage domestic production of these critical infrastructure components.
Key provisions
- Expands the advanced manufacturing production tax credit.
- Includes distribution transformers as eligible components.
- Provides a 10% tax credit for the production of qualifying transformers.
- Transformers must have an input voltage of 34.5 kilovolts or less and an output voltage of 600 volts or less.
- Transformers must be rated for operation at 60 hertz.
- The tax credit applies to transformers produced in the U.S. or a U.S. possession.
- The changes are effective 90 days after the bill’s enactment.
Who is affected
- Manufacturers of distribution transformers
- Taxpayers eligible for the advanced manufacturing production tax credit
- The clean energy equipment industry
Notable changes
- Adds distribution transformers to the list of eligible components for the advanced manufacturing production tax credit.
- Establishes a 10% tax credit rate for qualifying transformers.
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119th CONGRESS — 1st Session
S. 448
IN THE SENATE OF THE UNITED STATES
A BILL
To amend the Internal Revenue Code of 1986 to expand the advanced manufacturing production credit to include distribution transformers.
This Act may be cited as the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers Act CIRCUIT Act
or the
.
Section 45X of the Internal Revenue Code of 1986 is amended—
in subsection (b)(1)—
in subparagraph (L)(ii), by striking and
at the end,
in subparagraph (M), by striking the period at the end and inserting , and
, and
by adding at the end the following new subparagraph:
in the case of any distribution transformer, an amount equal to 10 percent of the costs incurred by the taxpayer with respect to production of such transformer.
in subsection (c)—
in paragraph (1)(A)—
in clause (iv), by striking and
at the end,
in clause (v), by striking the period at the end and inserting , and
, and
by adding at the end the following new clause:
any distribution transformer.
by adding at the end the following new paragraph:
The term distribution transformer has the same meaning given such term under section 321(35) of the Energy Policy and Conservation Act (42 U.S.C. 6291(35)).
The amendments made by this section shall apply to components produced and sold after the date which is 90 days after the date of enactment of this Act.