On June 25, 2025, Congressman Russell Fry from South Carolina’s 7th District and Congresswoman Sharice Davids of Kansas introduced the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act. This legislation aims to modify the existing 45X tax credit to encompass distribution transformers, thereby promoting domestic production.
Distribution transformers are essential for strengthening the U.S. electric grid and ensuring energy security. Currently, these components are in short supply due to rising energy demand and concerns about grid reliability. The CIRCUIT Act seeks to address these issues by expanding the advanced manufacturing production credit under Section 45X of the Internal Revenue Code. This expansion is intended to alleviate national shortages, ease supply chain bottlenecks, and reduce reliance on foreign suppliers.
Congressman Fry emphasized the importance of a reliable electric grid for American energy independence: “There is no path to American energy independence without a reliable, resilient electric grid—and that starts with distribution transformers.” He added that this act supports manufacturers crucial for grid growth while protecting jobs and advancing a pro-energy agenda.
Congresswoman Davids highlighted the bill’s potential impact on costs and project timelines: “Supply chain disruptions are driving up costs and slowing down projects in Kansas and across the country—and one of the best ways to fix it is by making more right here at home.”
The National Electrical Manufacturers Association (NEMA), among other organizations, supports this legislation. NEMA President Debra Phillips stated that “the bipartisan CIRCUIT Act will expand the list of entities included in the Advanced Manufacturing Tax Credit (45X) to include distribution transformers that are essential to building a reliable electrical grid.”
This House bill complements a similar Senate proposal introduced by Senators Jerry Moran from Kansas and Catherine Cortez Masto from Nevada.
For updates on Congressman Fry’s work in his district, follow his social media pages or visit his official website.
