Utilities get $billions in tax credits—no guarantee you'll see lower bills
H.R. 9945 — Lowering Energy Costs through Grid Modernization Act · Filed by George Whitesides (D-CA) · 3 cosponsors · Introduced Jul 23, 2026 · Referred to committee
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What it does
This bill creates a 6–30% federal tax credit for utilities and companies that upgrade electrical transmission lines using advanced conductors (high-capacity wires) within existing rights-of-way, streamlines environmental review by treating such projects as categorical exclusions under NEPA, and requires transmission providers to study and report on the grid-modernization benefits of these upgrades. The primary beneficiaries are electric utilities and transmission operators who can claim the tax credits; the stated public benefit is lower energy costs and improved grid reliability.
Why we flagged it
The bill's operative mechanism is a 6–30% investment tax credit for transmission upgrades, paired with a NEPA categorical exclusion that bypasses standard environmental review. The title frames this as 'lowering energy costs,' but the credit flows to utilities with no mandate to reduce consumer bills.
What the text implies
- The categorical exclusion under NEPA (Section 5) removes the requirement for environmental impact statements and public comment periods on transmission projects, potentially accelerating projects that affect sensitive lands or wildlife corridors without full public disclosure.
- The tax credit (Section 6) is available to any entity constructing high-performance transmission property, including private transmission companies and utilities. There is no requirement that the credit's value be passed to ratepayers, meaning the subsidy may simply increase utility profits.
The full analysis lists 5 implications of this text.
Who stands to gain
electric utilities (AES, WEC, DUK, ED, XEL); transmission operators; advanced conductor manufacturers