U.S. Rep. Dan Newhouse (R-Wash.) is urging House Ways and Means Committee Chair Jason Smith (R-Mo.) to retain tax credits for nuclear energy developments in the reconciliation bill.
Federal tax incentives aimed to support investment in and operation of nuclear plants are important to a nuclear resurgence, Newhouse said in a letter sent on May 1 and signed by about 25 House members.
In the letter to Smith, Newhouse said sections 45U (Zero-Emission Nuclear Power Production Credit), 45Y (Clean Electricity Production Credit) and 48E (Clean Energy Investment Tax Credit) of the Internal Revenue Code have proven to support the nuclear investment in existing and developing facilities.
“These incentives are already delivering results by preserving the existing nuclear fleet, unlocking billions in private investment, and signaling that the United States is serious about establishing itself as the global leader in nuclear energy at an affordable cost to customers,” Newhouse said in the letter.
Nuclear power already generates about 20% of the nation’s electricity, Newhouse said. Newhouse also said the tax incentives were an “economic imperative”. The nuclear plants provide over 250,000 jobs and the jobs pay more than 50% higher than the national average in the energy industry, according to Newhouse.
Newhouse emphasized the retention of the tax credits due to the increasing demand of electricity in the United States and nuclear regulatory concerns.
Ownership of a nuclear plant requires a license from the Nuclear Regulatory Commission (NRC), and the licensing process could take years, Newhouse said.
Due to “regulatory constraints,” Newhouse said tax equity financing is impractical for nuclear projects. Newhouse pushed for the retention of transferability, a part of the Inflation Reduction Act that allows developers to sell their tax credits and use the money to fund construction.
The letter was signed by Newhouse and 25 other House members, including Rep. Charles “Chuck” Fleischmann (R-Tenn.).
