26 U.S.C. § 45U — Zero-emission nuclear power production credit

(a) Amount of credit For the general business credit, the "zero-emission nuclear power production credit" for the year is figured in two steps. First, multiply 0.3 cents by the kilowatt hours of electricity that the taxpayer both produced at a "qualified nuclear power facility" and sold to an unrelated buyer that year. Then subtract the "reduction amount" for the year (subsection (b)(2)). Whatever's left after that subtraction is the credit. (b) Definitions (1) "Qualified nuclear power facility" means a nuclear facility that: (A) the taxpayer owns and uses to make electricity; (B) is not an "advanced nuclear power facility" as section 45J(d)(1) defines that term; and (C) was placed in service before this section became law. (2) "Reduction amount": (A) This is the smaller of two numbers: (i) the credit amount from step one of subsection (a), or (ii) 16 percent of the excess of (I) the facility's gross receipts that year from electricity it sold to an unrelated buyer, including any related electricity services or products sold along with it, subject to (B) below, over (II) 2.5 cents times the kilowatt-hours figure from (a)(1)(B). (B) Treatment of certain receipts: (i) The gross-receipts figure in (A)(ii)(I) also includes any payment the taxpayer got that year from a "zero-emission credit program" for this facility — counting any reductions that program itself required. (ii) A "zero-emission credit program" means any government payment program — federal, state, or local — that pays, even partly, for the facility's zero-emission, zero-carbon, or air-quality qualities. (iii) But if the taxpayer uses the full section 45U credit, figured without regard to this rule, to reduce what it collects from that zero-emission credit program, then that payment is left out of the gross-receipts figure. (3) "Electricity" means the energy the facility produces by converting nuclear fuel into electric power. (c) Other rules (1) Inflation adjustment: The 0.3-cent figure in (a)(1)(A) and the 2.5-cent figure in (b)(2)(A)(ii)(II) both get multiplied each year by the section 45(e)(2) inflation adjustment factor — substituting "calendar year 2023" for "calendar year 1992." Round the adjusted 0.3-cent figure to the nearest 0.05 cent, and the adjusted 2.5-cent figure to the nearest 0.1 cent. (2) Rules like paragraphs (1), (3), (4), (5), and (13) of section 45(e) apply here too. (3) Restrictions relating to prohibited foreign entities: (A) No credit for a tax year starting after this paragraph's enactment if the taxpayer is a "specified foreign entity" (section 7701(a)(51)(B)). (B) No credit for a tax year starting more than 2 years after this paragraph's enactment if the taxpayer is a "foreign-influenced entity" (section 7701(a)(51)(D), ignoring clause (i)(II) of that definition). (d) Wage requirements (1) A facility meeting the prevailing-wage rule in (2)(A) gets its credit multiplied by 5. (2) (A) That rule requires the taxpayer to make sure laborers and mechanics — its own or hired through a contractor or subcontractor — who alter or repair the facility get paid at least the local prevailing wage the Secretary of Labor most recently set, under the Davis-Bacon rules in subchapter IV of chapter 31 of title 40, United States Code. (B) If wages fall short, correction and penalty rules like section 45(b)(7)(B) apply. (3) The Secretary can issue regulations or guidance for this subsection, including recordkeeping and reporting rules. (e) Termination This credit does not apply to tax years starting after December 31, 2032.