Overview
Section 45U provides a production tax credit for electricity produced by existing nuclear power facilities. This credit is designed to keep existing nuclear plants operational by providing economic support for their continued clean electricity production. The credit applies to facilities placed in service before the enactment of the Inflation Reduction Act.
Credit Structure
Base credit per kilowatt-hour
Base rate for existing nuclear facilities
With Prevailing Wage & Apprenticeship
Enhanced credit per kilowatt-hour
Maximum credit with prevailing wage requirements satisfied
Bonus Multipliers
Gross Receipts Reduction
+Phase-outCredit phases out based on gross receipts from electricity sales, ensuring support targets facilities that need it most.
Eligibility & Requirements
- 1Facility must be an existing nuclear power plant
- 2Facility must be placed in service before August 16, 2022
- 3Facility must produce electricity from nuclear fission
- 4Must meet prevailing wage requirements for full credit
- 5Credit period runs from 2024 through 2032
Direct Pay Election
Tax-exempt organizations and certain other qualified entities may elect direct payment for Section 45U credits.
Learn More About Direct Pay