Internal Revenue Code:Sec. 45J. Credit for production from advanced nuclear power facilities
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TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAXES
Statute
SEC. 45J. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER FACILITIES.
(a) General Rule- For purposes of section 38, the advanced nuclear power
facility production credit of any taxpayer for any taxable year is equal
to the product of--
(1) 1.8 cents, multiplied by
(2) the kilowatt hours of electricity--
(A) produced by the taxpayer at an advanced nuclear power facility
during the 8-year period beginning on the date the facility was
originally placed in service, and
(B) sold by the taxpayer to an unrelated person during the taxable
year.
(b) National Limitation-
(1) IN GENERAL- The amount of credit which would (but for this
subsection and subsection (c)) be allowed with respect to any
facility for any taxable year shall not exceed the amount which
bears the same ratio to such amount of credit as--
(A) the national megawatt capacity limitation allocated to the
facility, bears to
(B) the total megawatt nameplate capacity of such facility.
(2) AMOUNT OF NATIONAL LIMITATION- The national megawatt capacity
limitation shall be 6,000 megawatts.
(3) ALLOCATION OF LIMITATION- The Secretary shall allocate the
national megawatt capacity limitation in such manner as the
Secretary may prescribe.
(4) REGULATIONS- Not later than 6 months after the date of the
enactment of this section, the Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection. Such regulations shall provide a
certification process under which the Secretary, after consultation
with the Secretary of Energy, shall approve and allocate the
national megawatt capacity limitation.
(c) Other Limitations-
(1) ANNUAL LIMITATION- The amount of the credit allowable under
subsection (a) (after the application of subsection (b)) for any
taxable year with respect to any facility shall not exceed an
amount which bears the same ratio to $125,000,000 as--
(A) the national megawatt capacity limitation allocated under
subsection (b) to the facility, bears to
(B) 1,000.
(2) Phaseout of credit.--
(A) In general.--The amount of the credit
determined under subsection (a) shall be reduced by an
amount which bears the same ratio to the amount of the
credit (determined without regard to this paragraph)
as--
(i) the amount by which the reference price
(as defined in section 45(e)(2)(C)) for the
calendar year in which the sale occurs exceeds 8
cents, bears to
(ii) 3 cents.
(B) Phaseout adjustment based on inflation.--The 8
cent amount in subparagraph (A) shall be adjusted by
multiplying such amount by the inflation adjustment
factor (as defined in section 45(e)(2)(B)) for the
calendar year in which the sale occurs. If any amount as
increased under the preceding sentence is not a multiple
of 0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.
(d) Advanced Nuclear Power Facility- For purposes of this section--
(1) IN GENERAL- The term `advanced nuclear power facility' means any
advanced nuclear facility--
(A) which is owned by the taxpayer and which uses nuclear energy
to produce electricity, and
(B) which is placed in service after the date of the enactment of
this paragraph and before January 1, 2021.
(2) ADVANCED NUCLEAR FACILITY- For purposes of paragraph (1), the term
`advanced nuclear facility' means any nuclear facility the reactor
design for which is approved after December 31, 1993, by the Nuclear
Regulatory Commission (and such design or a substantially similar
design of comparable capacity was not approved on or before such
date).
(e) Other Rules To Apply- Rules similar to the rules of paragraphs (1),
(3), (4), and (5) of section 45(e) shall apply for purposes of
this section.
Amendments
2005 - P.L. 109-135
(d) Amendments Related to Section 1306.--
(1) Paragraph (2) of section 45J(c) is amended to read as
follows:
(2) Phaseout of credit.--
(A) In general.--The amount of the credit
determined under subsection (a) shall be reduced by an
amount which bears the same ratio to the amount of the
credit (determined without regard to this paragraph)
as--
(i) the amount by which the reference price
(as defined in section 45(e)(2)(C)) for the
calendar year in which the sale occurs exceeds 8
cents, bears to
(ii) 3 cents.
(B) Phaseout adjustment based on inflation.--The 8
cent amount in subparagraph (A) shall be adjusted by
multiplying such amount by the inflation adjustment
factor (as defined in section 45(e)(2)(B)) for the
calendar year in which the sale occurs. If any amount as
increased under the preceding sentence is not a multiple
of 0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.
(2) Subsection (e) of <<NOTE: 26 USC 45J.>> section 45J is
amended by striking (2),
Sources
Energy Policy Act of 2005, Sec.1306, PL109-058, created new
Sec. 45J, Effective with the enactment of the Act.
