Federal tax incentives for investments in U.S. nuclear energy development would be expanded under a bill recently proposed by U.S. Rep. Dan Newhouse (R-WA).
“After protecting tax credits for nuclear energy in the Working Families Tax Cuts, it is time to expand investment opportunities for new projects in places like the Tri-Cities,” the congressman said on Tuesday.
The Working Families Tax Cuts — formally known as the One, Big Beautiful Bill that was signed into law on July 4 — added a new bonus credit incentive regarding the Clean Electricity Production Tax Credit under U.S. Code Section 45Y for “advanced nuclear facilities” located in “nuclear energy communities.”
Such communities are defined as any metropolitan statistical area (MSA) that has, or any time since 2010 has had, 0.17 percent direct employment related to the advancement of nuclear power.
The bonus incentive for the 45Y credit increases a facility’s otherwise applicable production tax credit rate by 10 percent but does not apply to the 48E Investment Tax Credit, according to a bill summary provided by Rep. Newhouse’s office.
The Parity for Nuclear Energy Investment Act, H.R. 6474, would create parity for advanced nuclear energy investment by making available the 10 percent new bonus incentive with respect to the Clean Electricity Investment Tax Credit under U.S. Code Section 48E.
“The administration is expediting efforts to produce more American nuclear energy, and Richland will be home to some of the first small modular reactors which will help achieve that goal,” said Rep. Newhouse. “These projects will create new high-quality jobs, increase economic development, and make Central Washington a leader in the future of U.S. nuclear energy production.”
Additionally, H.R. 6474 would grant eligibility to new advanced nuclear facilities in non-MSAs, making the bonus tax credit consistent with those in existing law for other energy generation sources, the summary says.
H.R. 6474 is supported by Energy Northwest, the Nuclear Energy Institute, Elementl Power, Constellation Energy, Holtec International, the U.S. Nuclear Energy Council, and X-Energy.