§45U Zero-emission nuclear power production credit

Summary

Gives a tax credit for electricity made at an eligible nuclear plant equal to 0.3 cents times the kilowatt-hours the owner produces and sells to an unrelated buyer in a taxable year, minus a “reduction amount.” The reduction amount is the smaller of (A) that 0.3‑cent figure or (B) 16 percent of the facility’s gross receipts from electricity sold to an unrelated person for the year, after subtracting 2.5 cents times the same kilowatt-hours. Payments from government zero‑emission credit programs count as gross receipts unless the full tax credit is used to reduce those program payments. Definitions: “Qualified nuclear power facility” — a plant the taxpayer owns that uses nuclear energy to make electricity, is not an advanced nuclear facility under section 45J(d)(1), and was placed in service before this law was enacted. “Reduction amount” — the number just described that lowers the credit. “Electricity” — energy made by converting nuclear fuel to electric power. “Zero‑emission credit program” — government payments tied to zero‑emission, zero‑carbon, or air quality attributes of the plant’s electricity. The 0.3‑cent and 2.5‑cent figures are increased for inflation using the law’s 2023-based formula and rounded (0.3c to nearest 0.05c; 2.5c to nearest 0.1c). If the owner meets local prevailing‑wage rules for repair or alteration work (as set by the Secretary of Labor under Davis‑Bacon rules), the credit is multiplied by 5. The Secretary must issue rules and recordkeeping guidance. No credit is allowed after December 31, 2032, and there are earlier cutoffs for certain foreign-related entities as defined in section 7701.