About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (June 27, 2017)

handle is hein.crs/govchzr0001 and id is 1 raw text is: ICong ressin, l Rcesa rch Sevice The Advanced Nuclear Production Tax Credit June 27, 2017 The advanced nuclear production tax credit (PTC) (Internal Revenue Code (IRC) Section 45J) provides a 1.8 cent per kilowatt hour (kWh) tax credit for electricity sold that was produced at qualifying facilities. Criteria for qualifying facilities include that they must use nuclear reactor designs approved by the Nuclear Regulatory Commission after 1993, and must be placed in service by the end of 2020. Qualifying facilities can claim tax credits during the first eight years of production. There are additional limitations associated with the provision. First, the credit is restricted to 6,000 megawatts (MW) of total electric generating capacity for all qualifying facilities nationwide, with the 6,000 MW allocated by the Internal Revenue Service (IRS). Second, taxpayers can claim no more than $125 million in tax credits per 1,000 MW of the allocated capacity in any single year. On June 20, 2017, the House passed H.R. 1551, a bill that would modify the credit for production from advanced nuclear power facilities. Specifically, the legislation proposes to (1) provide a reallocation for any unused portion of the 6,000 MW capacity limit; (2) eliminate the 2020 placed-in-service deadline for entities that have received an allocation of unused capacity; and (3) allow public entities to elect to forgo credits, allowing those credits to be transferred to project partners. If the 6,000 MW of capacity is reallocated, reallocations would first go to facilities placed in service before 2021, to the extent that such facilities did not receive an allocation equal to their full nameplate capacity. Any remaining unallocated capacity could then be allocated to facilities placed in service after January 1, 2021, in the order in which such facilities are placed in service. The Joint Committee on Taxation (JCT) has estimated that H.R. 1551 would reduce federal revenues by S 16 million over the 2018 through 2027 budget window. Legislative History and Background The advanced nuclear PTC was enacted as part of the Energy Policy Act of 2005 (EPACT05; P.L. 109- 58). The tax credit was one of several provisions in the act designed to support investment in new nuclear power plants. When the advanced nuclear PTC was enacted, it was estimated to cost $278 million over the 2005-2016 budget window. When enacted, however, most of the cost associated with this provision, costs in excess of $278 million, would have been expected to occur outside the budget window. Looking at the 10-year budget window upon enactment does not capture costs associated with production occurring after 2016. Current Tax Expenditure Estimates Both the JCT and Department of the Treasury provide tax expenditure estimates, or estimates of the forgone revenue, associated with provisions in the coming years. The JCT estimates the credit to be de CRS INSIGHT Prepared for Membes and Corm ni2tees o4 Congress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most