IRA Section 13105 – Zero-Emission Nuclear Power Production Tax Credit

Section 13105 of the IRA adds a new section 45U to the IRC, providing a tax credit for electricity generation at qualifying nuclear facilities. The credit is set at a base rate of 0.3 cents per kilowatt hour of electricity generated at a qualified nuclear facility and sold to an unrelated person. A qualified nuclear facility must not fall under the definition of an advanced nuclear power facility in section 45J of the IRC, and must have been placed in service before entry into force of the IRA. The credit is available for electricity generated and sold after December 31, 2023. It expires on December 31, 2032.

The amount of the tax credit may be reduced based on the price of electricity. It may also be increased by a multiple of 5 (to 1.5 cents per kilowatt hour of electricity produced) if certain wage requirements are met. The Treasury Department must issue regulations and guidelines on the wage requirements.