Bill Summary
This bill, known as the "Nuclear Powers America Act of 2019", seeks to amend the Internal Revenue Code of 1986 in order to provide an investment tax credit for the production of electricity from nuclear energy. This credit would apply to qualified nuclear energy property, which is defined as any amounts paid or incurred for the refueling of, and other expenditures related to, a qualifying nuclear power plant. The credit would be eligible for 30% of the cost of the property, but this percentage would decrease after 2023. The bill also provides for the transfer of the credit by certain public entities to eligible project partners, and allows for the credit to be taken into account in the first taxable year after the public entity's taxable year in which the credit was determined. This bill would go into effect after December 31, 2018 and apply to taxable years after this date.
Possible Impacts
1. Encouraging investment in nuclear energy production: This legislation may incentivize individuals and companies to invest in the production of electricity from nuclear energy by offering a tax credit. This could lead to an increase in nuclear energy production and potentially lower energy costs for consumers.
2. Impact on the environment: The production of electricity from nuclear energy is often seen as a cleaner alternative to fossil fuels. This legislation may lead to an increase in nuclear energy production, which could have a positive impact on the environment by reducing carbon emissions.
3. Employment and economic growth: The construction and operation of nuclear power plants requires a significant amount of skilled labor and can stimulate economic growth in the surrounding areas. This legislation may create job opportunities and boost the local economy in areas where nuclear power plants are built.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2314 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2314
To amend the Internal Revenue Code of 1986 to provide for an investment
tax credit related to the production of electricity from nuclear
energy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 12, 2019
Mr. LaHood (for himself, Mr. Kinzinger, Mr. Fitzpatrick, Mr. Rodney
Davis of Illinois, Mrs. Bustos, Mr. Williams, Mr. Marchant, Mr.
Smucker, Mr. Katko, Mr. Brown of Maryland, Mr. Ruppersberger, and Mr.
Bost) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for an investment
tax credit related to the production of electricity from nuclear
energy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nuclear Powers America Act of
2019''.
SEC. 2. ENERGY CREDIT FOR NUCLEAR ENERGY PROPERTY.
(a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code
of 1986 is amended in clause (vi) by striking ``or'', by inserting
``or'' at the end of clause (vii), and by adding at the end the
following new clause:
``(viii) qualified nuclear energy
property,''.
(b) Eligible for 30-Percent Credit.--Section 48(a)(2)(A)(i) of such
Code is amended by striking ``and'' in subclause (III) and by adding at
the end the following new subclause:
``(V) energy property described in
paragraph (3)(A)(viii) but only with
respect to property placed in service
before January 1, 2026, and''.
(c) Qualified Nuclear Energy Property.--Section 48(c) of such Code
is amended by adding at the end the following new paragraph:
``(5) Qualified nuclear energy property.--
``(A) In general.--The term `qualified nuclear
energy property' means any amounts paid or incurred for
the refueling of, and any other expenditures described
in section 263(a) with respect to, a qualifying nuclear
power plant.
``(B) Qualifying nuclear power plant.--The term
`qualifying nuclear power plant' means a nuclear power
plant which--
``(i) submitted an application for license
renewal to the Nuclear Regulatory Commission in
accordance with part 54 of title 10, Code of
Federal Regulations, before January 1, 2026, or
``(ii) certified to the Secretary (at such
time and in such form and in such manner as the
Secretary prescribes) that such plant will
submit an application for license renewal to
the Nuclear Regulatory Commission in accordance
with part 54 of title 10, Code of Federal
Regulations, before January 1, 2026.
``(C) Special rules.--
``(i) Basis.--For purposes of subsection
(a), the cumulative amounts paid or incurred by
the taxpayer during the taxable year with
respect to a qualifying nuclear power plant,
which are properly chargeable to capital
account, shall be treated as the basis of the
qualified nuclear energy property placed in
service for that taxable year.
``(ii) Placed in service.--For purposes of
subsection (a), qualified nuclear energy
property shall be treated as having been placed
in service on the last day of the taxable year
in which the taxpayer pays or incurs such
amounts described in clause (i).
``(iii) Recapture.--The Secretary shall, by
regulations, provide for recapturing the
benefit of any credit allowable under
subsection (a) to any qualifying nuclear power
plant which made a certification pursuant to
subparagraph (B) but does not file an
application of license renewal to the Nuclear
Regulatory Commission in accordance with part
54 of title 10, Code of Federal Regulations,
before January 1, 2026.''.
(d) Phaseout of 30-Percent Credit Rate for Nuclear Energy
Property.--Section 48(a) of such Code is amended by adding at the end
the following new paragraph:
``(8) Phaseout for qualified nuclear energy property.--In
the case of qualified nuclear energy property, the energy
percentage determined under paragraph (2) shall be equal to--
``(A) in the case of any property placed in service
after December 31, 2023, and before January 1, 2025, 26
percent, and
``(B) in the case of any property placed in service
after December 31, 2024, and before January 1, 2026, 22
percent.''.
(e) Coordination With Credit for Production From Advanced Nuclear
Power Facilities.--The last sentence of section 48(a)(3) is amended by
inserting ``or 45J'' after ``section 45''.
(f) Transfer of Credit by Certain Public Entities.--
(1) In general.--Section 48 of such Code is amended by
adding at the end the following new subsection:
``(e) Special Rule for Qualified Nuclear Energy Property.--
``(1) In general.--In the case of any qualified nuclear
energy property, if, with respect to a credit under subsection
(a) for any taxable year--
``(A) the taxpayer would be a qualified public
entity, and
``(B) such entity elects the application of this
subsection for such taxable year with respect to all
(or any portion specified in such election) of such
credit, the eligible project partner specified in such
election (and not the qualified public entity) shall be
treated as the taxpayer for purposes of this title with
respect to such credit (or such portion thereof).
``(2) Definitions.--For purposes of this subsection--
``(A) Qualified public entity.--The term `qualified
public entity' means--
``(i) a Federal, State, or local government
entity, or any political subdivision, agency,
or instrumentality thereof,
``(ii) a mutual or cooperative electric
company described in section 501(c)(12) or
section 1381(a)(2), or
``(iii) a not-for-profit electric utility
which has or had received a loan or loan
guarantee under the Rural Electrification Act
of 1936.
``(B) Eligible project partner.--The term `eligible
project partner' means--
``(i) any person responsible for operating,
maintaining, or repairing the qualifying
nuclear power plant to which the credit under
subsection (a) relates,
``(ii) any person who participates in the
provision of the nuclear steam supply system to
the qualifying nuclear power plant to which the
credit under subsection (a) relates,
``(iii) any person who participates in the
provision of nuclear fuel to the qualifying
nuclear power plant to which the credit under
subsection (a) relates, or
``(iv) any person who has an ownership
interest in such facility.
``(3) Special rules.--
``(A) Application to partnerships.--In the case of
a credit under subsection (a) which is determined with
respect to qualified nuclear energy property at the
partnership level--
``(i) for purposes of paragraph (1)(A), a
qualified public entity shall be treated as the
taxpayer with respect to such entity's
distributive share of such credit, and
``(ii) the term `eligible project partner'
shall include any partner of the partnership.
``(B) Taxable year in which credit taken into
account.--In the case of any credit (or portion
thereof) with respect to which an election is made
under subsection (e), such credit shall be taken into
account in the first taxable year of the eligible
project partner ending with, or after, the qualified
public entity's taxable year with respect to which the
credit was determined.
``(C) Treatment of transfer under private use
rules.--For purposes of section 141(b)(1), any benefit
derived by an eligible project partner in connection
with an election under this subsection shall not be
taken into account as a private business use.''.
(2) Special rule for proceeds of transfers for mutual or
cooperative electric companies.--Section 501(c)(12)(I) of such
Code is amended by inserting ``or 48(e)(1)'' after ``section
45J(e)(1)''.
(g) Conforming Amendment.--Section 48(a)(2)(A) of such Code is
amended by striking ``and (7)'' and inserting ``, (7), and (8)''.
(h) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2018, in taxable years ending after
such date, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990).
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