§45U Zero-emission Nuclear Power Production Credit

Summary

Pays a small tax credit for electricity from existing U.S. nuclear plants that produce no emissions. The basic credit equals 0.3 cents multiplied by the kilowatt-hours a taxpayer produces and sells to an unrelated buyer, minus a calculated “reduction amount.” That reduction amount is the smaller of (A) the basic credit itself or (B) 16% of the facility’s gross receipts from electricity sold during the year minus 2.5 cents times the same kilowatt-hours. Payments from federal, state, or local zero‑emission credit programs normally count in gross receipts, unless the taxpayer uses the full tax credit to reduce those program payments. The 0.3‑cent and 2.5‑cent figures are adjusted for inflation using the calendar year 2023 as the base and rounded to 0.05‑cent and 0.1‑cent steps, respectively. If the taxpayer meets required prevailing‑wage rules for repairs and alterations, the credit is multiplied by 5. The Treasury must issue rules for recordkeeping and implementation. No credit is allowed for tax years after December 31, 2032. Specified foreign entities are barred from the credit for tax years beginning after the date of enactment, and foreign‑influenced entities are barred for tax years beginning more than 2 years after that date. Qualified nuclear power facility: a taxpayer‑owned nuclear plant that uses nuclear fuel to make electricity, is not treated as an “advanced” facility under section 45J, and was placed in service before enactment. Reduction amount: the smaller of the basic credit or the 16% calculation described above. Zero‑emission credit program: government payments for zero‑emission/zero‑carbon or air‑quality attributes of electricity. Electricity: energy produced by converting nuclear fuel into electric power.