Editor's Note:
Pub. L. 117-169 added
Sec. 45U effective for electricity produced and sold after December
31, 2023, in taxable years beginning after that date.
I.R.C. § 45U(a) Amount Of Credit —
For purposes of section
38, the zero-emission nuclear power production credit
for any taxable year is an amount equal to the amount by which—
I.R.C. § 45U(a)(1) —
the product of—
I.R.C. § 45U(a)(1)(A) —
0.3 cents, multiplied by
I.R.C. § 45U(a)(1)(B) —
the kilowatt hours of electricity—
I.R.C. § 45U(a)(1)(B)(i) —
produced by the taxpayer at a qualified
nuclear power facility, and
I.R.C. § 45U(a)(1)(B)(ii) —
sold by the taxpayer to an unrelated
person during the taxable year, exceeds
I.R.C. § 45U(a)(2) —
the reduction amount for such taxable
year.
I.R.C. § 45U(b) Definitions
I.R.C. § 45U(b)(1) Qualified Nuclear Power Facility —
For purposes of this section, the term “qualified
nuclear power facility” means any nuclear facility—
I.R.C. § 45U(b)(1)(A) —
which is owned by the taxpayer and which
uses nuclear energy to produce electricity,
I.R.C. § 45U(b)(1)(B) —
which is not an advanced nuclear power
facility as defined in subsection (d)(1) of section 45J, and
I.R.C. § 45U(b)(1)(C) —
which is placed in service before the
date of the enactment of this section.
I.R.C. § 45U(b)(2) Reduction Amount
I.R.C. § 45U(b)(2)(A) In General —
For 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.R.C. § 45U(b)(2)(A)(i) —
the amount determined under subsection
(a)(1), or
I.R.C. § 45U(b)(2)(A)(ii) —
the amount equal to 16 percent of the
excess of—
I.R.C. § 45U(b)(2)(A)(ii)(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
I.R.C. § 45U(b)(2)(A)(ii)(II) —
the amount equal to the product of—
I.R.C. § 45U(b)(2)(A)(ii)(II)(aa) —
2.5 cents, multiplied by
I.R.C. § 45U(b)(2)(A)(ii)(II)(bb) —
the amount determined under subsection
(a)(1)(B).
I.R.C. § 45U(b)(2)(B) Treatment Of Certain Receipts
I.R.C. § 45U(b)(2)(B)(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.
I.R.C. § 45U(b)(2)(B)(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.
I.R.C. § 45U(b)(2)(B)(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.
I.R.C. § 45U(b)(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.
I.R.C. § 45U(c) Other Rules
I.R.C. § 45U(c)(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.
I.R.C. § 45U(c)(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.
I.R.C. § 45U(d) Wage Requirements
I.R.C. § 45U(d)(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.
I.R.C. § 45U(d)(2) Prevailing Wage Requirements
I.R.C. § 45U(d)(2)(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.
I.R.C. § 45U(d)(2)(B) Correction And Penalty Related To Failure To Satisfy Wage Requirements —
Rules similar to the rules of section 45(b)(7)(B) shall
apply.
I.R.C. § 45U(d)(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.
I.R.C. § 45U(e) Termination —
This section shall not apply to taxable years beginning
after December 31, 2032.
(Added by Pub.
L. 117-169, title I, Sec. 13105(a), Aug. 16, 2022, 136 Stat.
1818.)
BACKGROUND NOTES
AMENDMENTS
2022 — Subsec. (c)(2). Pub. L. 117-169, title I, Sec. 13204(b)(2),
amended par. (2) by substituting “(5), and (13)” for “and
(5)”.
EFFECTIVE DATE
The amendments made by this section shall apply
to electricity produced and sold after December 31, 2023, in taxable
years beginning after such date.
