II 

115TH CONGRESS 

1ST SESSION S. 666 

To amend the Internal Revenue Code of 1986 to modify the credit for 

production from advanced nuclear power facilities. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2017 

Mr. SCOTT (for himself, Mr. GRAHAM, and Mr. ISAKSON) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the credit for production from advanced nuclear power 

facilities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. MODIFICATIONS OF CREDIT FOR PRODUCTION 

4 FROM ADVANCED NUCLEAR POWER FACILI5 TIES. 

6 (a) TREATMENT OF UNUTILIZED LIMITATION

7 AMOUNTS.—Section 45J(b) of the Internal Revenue Code 

8 of 1986 is amended— 

9 (1) in paragraph (4), by inserting ‘‘or any 

10 amendment to’’ after ‘‘enactment of’’, and 


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1 (2) by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) ALLOCATION OF UNUTILIZED LIMITA4 TION.— 

5 ‘‘(A) IN GENERAL.—Any unutilized na6 tional megawatt capacity limitation shall be al7 located by the Secretary under paragraph (3) 

8 as rapidly as is practicable after December 31, 

9 2020— 

10 ‘‘(i) first to facilities placed in service 

11 on or before such date to the extent that 

12 such facilities did not receive an allocation 

13 equal to their full nameplate capacity, and 

14 ‘‘(ii) then to facilities placed in service 

15 after such date in the order in which such 

16 facilities are placed in service. 

17 ‘‘(B) UNUTILIZED NATIONAL MEGAWATT

18 CAPACITY LIMITATION.—The term ‘unutilized 

19 national megawatt capacity limitation’ means 

20 the excess (if any) of— 

21 ‘‘(i) 6,000 megawatts, over 

22 ‘‘(ii) the aggregate amount of national 

23 megawatt capacity limitation allocated by 

24 the Secretary before January 1, 2021, re25 duced by any amount of such limitation 


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1 which was allocated to a facility which was 

2 not placed in service before such date. 

3 ‘‘(C) COORDINATION WITH OTHER PROVI4 SIONS.—In the case of any unutilized national 

5 megawatt capacity limitation allocated by the 

6 Secretary pursuant to this paragraph— 

7 ‘‘(i) such allocation shall be treated 

8 for purposes of this section in the same 

9 manner as an allocation of national mega10 watt capacity limitation, and 

11 ‘‘(ii) subsection (d)(1)(B) shall not 

12 apply to any facility which receives such al13 location.’’. 

14 (b) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN15 TITIES.— 

16 (1) IN GENERAL.—Section 45J of such Code is 

17 amended— 

18 (A) by redesignating subsection (e) as sub19 section (f), and 

20 (B) by inserting after subsection (d) the 

21 following new subsection: 

22 ‘‘(e) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN23 TITIES.— 

24 ‘‘(1) IN GENERAL.—If, with respect to a credit 

25 under subsection (a) for any taxable year— 


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1 ‘‘(A) the taxpayer would be a qualified 

2 public entity, and 

3 ‘‘(B) such entity elects the application of 

4 this paragraph for such taxable year with re5 spect to all (or any portion specified in such 

6 election) of such credit, 

7 the eligible project partner specified in such election 

8 (and not the qualified public entity) shall be treated 

9 as the taxpayer for purposes of this title with re10 spect to such credit (or such portion thereof). 

11 ‘‘(2) DEFINITIONS.—For purposes of this sub12 section— 

13 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The 

14 term ‘qualified public entity’ means— 

15 ‘‘(i) a Federal, State, or local govern16 ment entity, or any political subdivision, 

17 agency, or instrumentality thereof, 

18 ‘‘(ii) a mutual or cooperative electric 

19 company described in section 501(c)(12) or 

20 section 1381(a)(2), or 

21 ‘‘(iii) a not-for-profit electric utility 

22 which has or had received a loan or loan 

23 guarantee under the Rural Electrification 

24 Act of 1936. 


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1 ‘‘(B) ELIGIBLE PROJECT PARTNER.—The 

2 term ‘eligible project partner’ means— 

3 ‘‘(i) any person responsible for, or 

4 participating in, the design or construction 

5 of the advanced nuclear power facility to 

6 which the credit under subsection (a) re7 lates, 

8 ‘‘(ii) any person who participates in 

9 the provision of the nuclear steam supply 

10 system to the advanced nuclear power fa11 cility to which the credit under subsection 

12 (a) relates, 

13 ‘‘(iii) any person who participates in 

14 the provision of nuclear fuel to the ad15 vanced nuclear power facility to which the 

16 credit under subsection (a) relates, or 

17 ‘‘(iv) any person who has an owner18 ship interest in such facility. 

19 ‘‘(3) SPECIAL RULES.— 

20 ‘‘(A) APPLICATION TO PARTNERSHIPS.—In 

21 the case of a credit under subsection (a) which 

22 is determined at the partnership level— 

23 ‘‘(i) for purposes of paragraph (1)(A), 

24 a qualified public entity shall be treated as 


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1 the taxpayer with respect to such entity’s 

2 distributive share of such credit, and 

3 ‘‘(ii) the term ‘eligible project partner’ 

4 shall include any partner of the partner5 ship. 

6 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

7 TAKEN INTO ACCOUNT.—In the case of any 

8 credit (or portion thereof) with respect to which 

9 an election is made under paragraph (1), such 

10 credit shall be taken into account in the first 

11 taxable year of the eligible project partner end12 ing with, or after, the qualified public entity’s 

13 taxable year with respect to which the credit 

14 was determined. 

15 ‘‘(C) TREATMENT OF TRANSFER UNDER

16 PRIVATE USE RULES.—For purposes of section 

17 141(b)(1), any benefit derived by an eligible 

18 project partner in connection with an election 

19 under this subsection shall not be taken into ac20 count as a private business use.’’. 

21 (2) SPECIAL RULE FOR PROCEEDS OF TRANS22 FERS FOR MUTUAL OR COOPERATIVE ELECTRIC

23 COMPANIES.—Section 501(c)(12) of such Code is 

24 amended by adding at the end the following new 

25 subparagraph: 


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1 ‘‘(I) In the case of a mutual or cooperative 

2 electric company described in this paragraph or 

3 an organization described in section 1381(a)(2), 

4 income received or accrued in connection with 

5 an election under section 45J(e)(1) shall be 

6 treated as an amount collected from members 

7 for the sole purpose of meeting losses and ex8 penses.’’. 

9 (c) EFFECTIVE DATES.— 

10 (1) TREATMENT OF UNUTILIZED LIMITATION

11 AMOUNTS.—The amendment made by subsection (a) 

12 shall take effect on the date of the enactment of this 

13 Act. 

14 (2) TRANSFER OF CREDIT BY CERTAIN PUBLIC

15 ENTITIES.—The amendments made by subsection 

16 (b) shall apply to taxable years beginning after De17 cember 31, 2017. 

Æ 


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