H.R. 1551, to amend the Internal Revenue Code of 1986 to modify the credit for production from advanced nuclear power facilities
Floor Situation
On Tuesday June 20, 2017, the House will consider H.R. 1551, to amend the Internal Revenue Code of 1986 to modify the credit for production from advanced nuclear power facilities, under suspension of the rules. H.R. 1551 was introduced on March 15, 2017 and was referred to the Committee on Ways and Means, which ordered the bill reported by voice vote on June 15, 2017.
Summary
H.R. 1551 amends the Internal Revenue Code of 1986 to modify the credit for production from advanced nuclear power facilities. Specifically, this bill amends the United States tax code to allow nonprofit partners in nuclear power facilities to effectively use the nuclear production tax credit (PTC), allowing them to pass rate savings onto consumers. The bill also would provide certainty regarding the reallocation of credits in order to ensure that the credits provided under the law are fully utilized as intended.
Background
Four new nuclear power units are currently under construction in South Carolina and Georgia, creating tens of thousands of jobs and reducing carbon dioxide emissions. In each new nuclear unit, one of the partners is a nonprofit entity. This legislation would allow these nonprofits to utilize the full amount of the nuclear PTC in these construction projects, allowing them to pass rate savings onto consumers in South Carolina and other states in the southeast.[1]
The nuclear PTC was designed to encourage investment in nuclear energy projects between public–private partnerships and has been essential in attracting new development in nuclear facilities. However, under current law, rate payers to for-profit partners receive savings from the credit, while rate payers to nonprofit partners do not. This bill amends the law to ensure the credit works as it was originally intended to benefit both nonprofit and for-profit investors.[2]
According to the bill’s sponsor, “Other energy technologies are able to fully use their credits with public-private partnerships and nuclear energy should have the same consideration. This bill helps to correct a disparity of current law so savings can be passed on to millions of consumers in South Carolina and across the country who deserve affordable, reliable energy.”[3]
Cost
The Joint Committee on Taxation (JCT) estimates reduced revenues of $16 million over 10 years.
Staff Contact
For questions or further information please contact Jake Vreeburg with the House Republican Policy Committee by email or at 6-1828.
[1] See Rep. Rice’s Press Release, “Rep. Rice, Sen. Scott Introduce Bill to Modify the Nuclear Production Tax Credit, Save Rate Payers Money,” March 15, 2017.
[2] See Rep. Rice’s Press Release, “Rep. Rice, Sen. Scott Introduce Bill to Modify the Nuclear Production Tax Credit, Save Rate Payers Money,” March 15, 2017.
[3] See Rep. Rice’s Press Release, “Rep. Rice, Sen. Scott Introduce Bill to Modify the Nuclear Production Tax Credit, Save Rate Payers Money,” March 15, 2017.