45U: Zero-Emission Nuclear Power Production Credit

Federal Agency

Sub-Department

Internal Revenue Service (IRS)

Purpose

To invest in electricity from qualified nuclear power facilities that start construction after January 1, 2024.

Applicant and/or Project Eligibility Requirements

Existing nuclear power plants that are eligible for the 45J advanced nuclear production tax credit are not eligible for the 45U credit.

Decarbonization Considerations

Must be zero carbon electricity produced at the nuclear facility.

Equity Considerations

A 5X multiplier is available if prevailing wage requirement is met for workers doing alteration or repair at the facility.

Helpful Tips

Direct Pay is eligible for this credit for tax-exempt entities. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here: https://cityrenewables.org/funding-guidance/understanding-available-incentives/tax-credits-for-renewable-energy/

Other Notes

For more information on prevailing wage and apprenticeship requirements, see here: https://www.irs.gov/credits-deductions/prevailing-wage-and-apprenticeship-requirements