Bill to Boost U.S. Transformer Production
It’s not easy to get transformers these days. Lead times are long. Supply is not keeping up with demand.
Every American industry depends on transformers. But we need to increase the supply.
So, on February 6, 2025, two senators introduced a bill to boost U.S. transformer production.
The CIRCUIT Act
The Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act is a bipartisan effort. Sens. Jerry Moran (R-Kan.) and Catherine Cortez Masto (D-Nev.) jointly introduced the bill.
The bill offers U.S. transformer manufacturers a 10% tax credit. This expands the Advanced Manufacturing Production Credit (part of the Inflation Reduction Act). The goal of this tax credit is to incentivize domestic transformer production. In turn, this will increase the U.S.’s supply of transformers.
Why Boost Transformer Production?
The big problem in the U.S. electrical industry is that supply can’t keep up with demand. Grid infrastructure is aging fast—faster than it can be replaced. New renewables and datacenter projects have also increased the demand. This placed significant strain on the supply chain.
Maddox helps with these issues by building new transformers in common voltages to stock, and remanufacturing old transformers, to keep more units in circulation.
The tax credit offered in the CIRCUIT Act incentivizes transformer manufacturing. Manufacturers would be willing to pour more resources into building critical electrical equipment.
But this isn’t the only benefit of the Act. As Sen. Jerry Moran (R-Kan.), who introduced the bill, said:
“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.”
In short, the whole American electrical industry stands to benefit.
Conclusion
Transformer production isn’t just a luxury. Sen. Cortez Masto noted this as well.
“[Boosting] the production of distribution transformers is critical for lowering energy costs, supporting energy resiliency, and strengthening our national security.”
Maddox is proud to be part of these efforts. Through remanufacturing, repair, and building new transformers, Maddox powers American industry.
