45U: Zero-Emission Nuclear Power Production Credit

Federal Agency

Sub-Department

Internal Revenue Service (IRS)

Purpose

To provide tax credits for electricity produced at a qualified nuclear power facility.

Applicant and/or Project Eligibility Requirements

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

Helpful Tips

Tax-exempt entities can leverage these credits through a new mechanism known as "elective" or "direct" pay. 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

Credit amount phases down depending on the amount of energy produced and the gross receipts of the nuclear power facility.