On Tuesday, August 16, the Inflation Reduction Act of 2022—or IRA—was signed into law. The IRA includes massive spending for promotion of clean energy technology—the largest-ever such fiscal package. Included in the Act is the goal to build American clean energy supply chains by  incentivizing domestic production in clean energy technologies, providing tax incentives for using U.S.-sourced products, and issuing clean energy tax credits for using materials with U.S.-made steel.

The MGM footprint is over 350,000 sqft., 120,000 sqft of which is our manufacturing facility in Los Angeles, CA. That facility along with a domestic supplier base makes MGM the only manufacturer who can qualify for “Made-in- America” statutes for both Dry and Oil-Filled, Low and Medium Voltage transformers. MGM, an American owned and operated company, qualifies for all “Made-in America” statutes, which differentiates us from the competition.

The Buy American Act applies when the federal government is directly assisting the procurement of products, or a federal facility is being constructed. Under this statute, the goods or products are qualified as being domestic when they are 100% manufactured in the United States and with at least 50% domestic content.

The Buy America Act typically applies only to mass-transit procurements for state and local government projects. End products must be 100% manufactured in the United States and all
steel and iron components MUST be mined, melted, and manufactured in the United States.

The “Made in the USA” or “Made in America” label is regulated by the Federal Trade Commission (FTC) requires that it must “contain no – or negligible – foreign content” and the final assembly must take place in the United States. Alternatively, the producer can label the product with the exact percentage of U.S. content, e.g.: “60% U.S. content”.

The “Assembled in the U.S.A” label which allows for foreign subcomponents as long as there is a “substantial transformation”, but what constitutes a “substantial transformation” is left to
interpretation.

 Please contact us at 323-726-0888 for more information.