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26 U.S. Code § 45U - Zero-emission nuclear power production credit

(a) Amount of creditFor purposes of section 38, the zero-emission nuclear power production credit for any taxable year is an amount equal to the amount by which—
(1) the product of—
(A)
0.3 cents, multiplied by
(B) the kilowatt hours of electricity
(i)
produced by the taxpayer at a qualified nuclear power facility, and
(ii)
sold by the taxpayer to an unrelated person during the taxable year, exceeds
(2)
the reduction amount for such taxable year.
(b) Definitions
(1) Qualified nuclear power facilityFor purposes of this section, the term “qualified nuclear power facility” means any nuclear facility—
(A)
which is owned by the taxpayer and which uses nuclear energy to produce electricity,
(B)
which is not an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and
(C)
which is placed in service before the date of the enactment of this section.
(2) Reduction amount
(A) In generalFor purposes of this section, the term “reduction amount” means, with respect to any qualified nuclear power facility for any taxable year, the amount equal to the lesser of—
(i)
the amount determined under subsection (a)(1), or
(ii) the amount equal to 16 percent of the excess of—
(I)
subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the electricity produced by such facility) and sold to an unrelated person during such taxable year, over
(II) the amount equal to the product of—
(aa)
2.5 cents, multiplied by
(bb)
the amount determined under subsection (a)(1)(B).
(B) Treatment of certain receipts
(i) In general

Subject to clause (iii), the amount determined under subparagraph (A)(ii)(I) shall include any amount received by the taxpayer during the taxable year with respect to the qualified nuclear power facility from a zero-emission credit program. For purposes of determining the amount received during such taxable year, the taxpayer shall take into account any reductions required under such program.

(ii) Zero-emission credit program

For purposes of this subparagraph, the term “zero-emission credit program” means any payments with respect to a qualified nuclear power facility as a result of any Federal, State or local government program for, in whole or in part, the zero-emission, zero-carbon, or air quality attributes of any portion of the electricity produced by such facility.

(iii) Exclusion

For purposes of clause (i), any amount received by the taxpayer from a zero-emission credit program shall be excluded from the amount determined under subparagraph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this subparagraph) is used to reduce payments from such zero-emission credit program.

(3) Electricity

For purposes of this section, the term “electricity” means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power.

(c) Other rules
(1) Inflation adjustment

The 0.3 cent amount in subsection (a)(1)(A) and the 2.5 cent amount in subsection (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), as applied by substituting “calendar year 2023” for “calendar year 1992” in subparagraph (B) thereof) for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 2.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.

(2) Special rules

Rules similar to the rules of paragraphs (1), (3), (4), (5), and (13) of section 45(e) shall apply for purposes of this section.

(d) Wage requirements
(1) Increased credit amount for qualified nuclear power facilities

In the case of any qualified nuclear power facility which satisfies the requirements of paragraph (2)(A), the amount of the credit determined under subsection (a) shall be equal to such amount (as determined without regard to this sentence) multiplied by 5.

(2) Prevailing wage requirements
(A) In general

The requirements described in this subparagraph with respect to any qualified nuclear power facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the alteration or repair of such facility shall be paid wages at rates not less than the prevailing rates for alteration or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(B) Correction and penalty related to failure to satisfy wage requirements

Rules similar to the rules of section 45(b)(7)(B) shall apply.

(3) Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.

(e) Termination

This section shall not apply to taxable years beginning after December 31, 2032.

(Added and amended Pub. L. 117–169, title I, §§ 13105(a), 13204(b)(2), Aug. 16, 2022, 136 Stat. 1929, 1940.)
Editorial Notes
References in Text

The date of the enactment of this section, referred to in subsec. (b)(1)(C), is the date of enactment of Pub. L. 117–169, which was approved Aug. 16, 2022.

Amendments

2022—Subsec. (c)(2). Pub. L. 117–169, § 13204(b)(2), substituted “(5), and (13)” for “and (5)”.

Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment

Amendment by section 13204(b)(2) of Pub. L. 117–169 applicable to electricity produced after Dec. 31, 2022, see section 13204(b)(3) of Pub. L. 117–169, set out as a note under section 45 of this title.

Effective Date

Pub. L. 117–169, title I, § 13105(c), Aug. 16, 2022, 136 Stat. 1931, provided that:

“This section [enacting this section and amending section 38 of this title] shall apply to electricity produced and sold after December 31, 2023, in taxable years beginning after such date.”