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26 U.S. Code § 45U

IRA Statuatory Location:

13105

Tax Code Location:

26 U.S. Code § 45U

New or Modified Provision:

New

Eligible Recipients:

Existing nuclear power plants at time of enactment that are not eligible for the 45J credit.

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Tax credit for electricity produced at a qualified nuclear power facility.
Direct Pay Eligibility:
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.
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 phases down depending 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.
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