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- Tax Credit
IRA Statuatory Location:
13105
Tax Code Location:
26 U.S. Code § 45U
New or Modified Provision:
New
Eligible Recipients:
Nuclear
Tribal Eligibility:
Yes
Bureau/Office
Funded by:
U.S. Department of Treasury
Description
Tax credit for electricity produced at a qualified nuclear power facility. Existing nuclear power plants at time of enactment that are not eligible for the 45J credit.
Direct Pay Eligibility:
Yes, for tax-exempt organizations; states; political subdivisions; the Tennessee Valley Authority; Indian Tribal governments; Alaska Native Corporations; and rural electricity co-ops.
Transferability:
Yes
Stackability:
Facilities eligible for the 45J advanced nuclear production tax credit are not eligible for the 45U credit. Payments from federal, state, or local zero-emission nuclear subsidies reduce the credit amount.
Energy Community Bonus:
No
Relevant Announcements
Related Resources
Additional information is available on the Resources page.Key Details
Period of Availability
Available for electricity produced and sold after 12/31/23, in tax years beginning after that date. Not available for tax years beginning after 12/31/32.
Tax Mechanism:
Production tax credit
Base Credit Amount:
0.3 cents/kWh, inflation adjusted after 2024. Credit amount is reduced based on the amount of energy produced and the gross receipts of the nuclear power facility.
Bonus Credit Amount:
5 times the base credit if prevailing wage requirement is met for workers doing alteration or repair at the facility. Initial guidance on the labor provisions is available here.