Internal Revenue Code:Sec. 45J. Credit for production from advanced nuclear power facilities

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Contents


Location


     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 aggregate amount 
        of national megawatt capacity limitation allocated by the 
        Secretary under paragraph (3) shall not exceed 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


2007 - P.L. 110-172
SEC. 6. AMENDMENTS RELATED TO THE ENERGY POLICY ACT OF 2005.

    (a) Amendment Related to Section 1306 of the Act.--Paragraph (2) of 
section 45J(b) is amended to read as follows:
            ``(2) Amount of national limitation.--The aggregate amount 
        of national megawatt capacity limitation allocated by the 
        Secretary under paragraph (3) shall not exceed 6,000 
        megawatts.''.

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.
    

Miscellaneous


References


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