II 

Calendar No. 300 

115TH CONGRESS 

2D SESSION H. R. 1551 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2017 

Received 

FEBRUARY 5, 2018 

Read the first time 

FEBRUARY 6, 2018 

Read the second time and placed on the calendar 

AN ACT 

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, 


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1 SECTION 1. MODIFICATIONS OF CREDIT FOR PRODUCTION 

2 FROM ADVANCED NUCLEAR POWER FACILI3 TIES. 

4 (a) TREATMENT OF UNUTILIZED LIMITATION

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

6 of 1986 is amended— 

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

8 amendment to’’ after ‘‘enactment of’’; and 

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

10 paragraph: 

11 ‘‘(5) ALLOCATION OF UNUTILIZED LIMITA12 TION.— 

13 ‘‘(A) IN GENERAL.—Any unutilized na14 tional megawatt capacity limitation shall be al15 located by the Secretary under paragraph (3) 

16 as rapidly as is practicable after December 31, 

17 2020— 

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

19 on or before such date to the extent that 

20 such facilities did not receive an allocation 

21 equal to their full nameplate capacity; and 

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

23 after such date in the order in which such 

24 facilities are placed in service. 

25 ‘‘(B) UNUTILIZED NATIONAL MEGAWATT

26 CAPACITY LIMITATION.—The term ‘unutilized 


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1 national megawatt capacity limitation’ means 

2 the excess (if any) of— 

3 ‘‘(i) 6,000 megawatts, over 

4 ‘‘(ii) the aggregate amount of national 

5 megawatt capacity limitation allocated by 

6 the Secretary before January 1, 2021, re7 duced by any amount of such limitation 

8 which was allocated to a facility which was 

9 not placed in service before such date. 

10 ‘‘(C) COORDINATION WITH OTHER PROVI11 SIONS.—In the case of any unutilized national 

12 megawatt capacity limitation allocated by the 

13 Secretary pursuant to this paragraph— 

14 ‘‘(i) such allocation shall be treated 

15 for purposes of this section in the same 

16 manner as an allocation of national mega17 watt capacity limitation; and 

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

19 apply to any facility which receives such al20 location.’’. 

21 (b) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN22 TITIES.— 

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

24 amended— 


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1 (A) by redesignating subsection (e) as sub2 section (f); and 

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

4 following new subsection: 

5 ‘‘(e) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN6 TITIES.— 

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

8 under subsection (a) for any taxable year— 

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

10 public entity; and 

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

12 this paragraph for such taxable year with re13 spect to all (or any portion specified in such 

14 election) of such credit, 

15 the eligible project partner specified in such election 

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

17 as the taxpayer for purposes of this title with re18 spect to such credit (or such portion thereof). 

19 ‘‘(2) DEFINITIONS.—For purposes of this sub20 section— 

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

22 term ‘qualified public entity’ means— 

23 ‘‘(i) a Federal, State, or local govern24 ment entity, or any political subdivision, 

25 agency, or instrumentality thereof; 


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1 ‘‘(ii) a mutual or cooperative electric 

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

3 section 1381(a)(2); or 

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

5 which has or had received a loan or loan 

6 guarantee under the Rural Electrification 

7 Act of 1936. 

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

9 term ‘eligible project partner’ means— 

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

11 participating in, the design or construction 

12 of the advanced nuclear power facility to 

13 which the credit under subsection (a) re14 lates; 

15 ‘‘(ii) any person who participates in 

16 the provision of the nuclear steam supply 

17 system to the advanced nuclear power fa18 cility to which the credit under subsection 

19 (a) relates; 

20 ‘‘(iii) any person who participates in 

21 the provision of nuclear fuel to the ad22 vanced nuclear power facility to which the 

23 credit under subsection (a) relates; or 

24 ‘‘(iv) any person who has an owner25 ship interest in such facility. 


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1 ‘‘(3) SPECIAL RULES.— 

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

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

4 is determined at the partnership level— 

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

6 a qualified public entity shall be treated as 

7 the taxpayer with respect to such entity’s 

8 distributive share of such credit; and 

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

10 shall include any partner of the partner11 ship. 

12 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

13 TAKEN INTO ACCOUNT.—In the case of any 

14 credit (or portion thereof) with respect to which 

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

16 credit shall be taken into account in the first 

17 taxable year of the eligible project partner end18 ing with, or after, the qualified public entity’s 

19 taxable year with respect to which the credit 

20 was determined. 

21 ‘‘(C) TREATMENT OF TRANSFER UNDER

22 PRIVATE USE RULES.—For purposes of section 

23 141(b)(1), any benefit derived by an eligible 

24 project partner in connection with an election 


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1 under this subsection shall not be taken into ac2 count as a private business use.’’. 

3 (2) SPECIAL RULE FOR PROCEEDS OF TRANS4 FERS FOR MUTUAL OR COOPERATIVE ELECTRIC

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

6 amended by adding at the end the following new 

7 subparagraph: 

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

9 electric company described in this paragraph or 

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

11 income received or accrued in connection with 

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

13 treated as an amount collected from members 

14 for the sole purpose of meeting losses and ex15 penses.’’. 

16 (c) EFFECTIVE DATES.— 

17 (1) TREATMENT OF UNUTILIZED LIMITATION

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

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

20 Act. 

21 (2) TRANSFER OF CREDIT BY CERTAIN PUBLIC

22 ENTITIES.—The amendments made by subsection 


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1 (b) shall apply to taxable years beginning after the 

2 date of the enactment of this Act. 

Passed the House of Representatives June 20, 2017. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 300 

115TH CONGRESS 

2D SESSION H. R. 1551 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

nuclear power facilities. modify the credit for production from advanced 

FEBRUARY 6, 2018 

Read the second time and placed on the calendar 


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