IB 

Union Calendar No. 124 

115TH CONGRESS 

1ST SESSION H. R. 1551 

[Report No. 115–183] 

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

production from advanced nuclear power facilities. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 15, 2017 

Mr. RICE of South Carolina (for himself, Mr. BLUMENAUER, Mr. DUNCAN of 

South Carolina, Mr. MARCHANT, Mr. DAVID SCOTT of Georgia, Ms. 

SINEMA, Mr. VEASEY, Mr. ALLEN, Mr. JOHNSON of Georgia, Mr. WILSON of South Carolina, Mr. ROGERS of Alabama, Mr. BYRNE, Mr. 

BISHOP of Georgia, Mrs. NAPOLITANO, Mr. CLYBURN, Mr. JODY B. 

HICE of Georgia, Ms. SEWELL of Alabama, Mr. PAULSEN, Mr. SANFORD, 

Mr. SIMPSON, Mr. GOWDY, and Mr. FERGUSON) introduced the following 

bill; which was referred to the Committee on Ways and Means 

JUNE 20, 2017 

Additional sponsors: Mr. SCHWEIKERT, Mr. RENACCI, Mr. LOUDERMILK, Mr. 

KELLY of Pennsylvania, Mrs. ROBY, Mr. CARTER of Georgia, Mr. 

BACON, Mr. WOODALL, Mr. PALAZZO, Mr. GRAVES of Georgia, and Mr. 

COLLINS of Georgia 

JUNE 20, 2017 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 15, 2017] 


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•HR 1551 RH

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the credit for production from advanced nuclear power 

facilities. 


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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 

11 (2) by adding at the end the following new para12 graph: 

13 ‘‘(5) ALLOCATION OF UNUTILIZED LIMITATION.— 

14 ‘‘(A) IN GENERAL.—Any unutilized na15 tional megawatt capacity limitation shall be al16 located by the Secretary under paragraph (3) as 

17 rapidly as is practicable after December 31, 

18 2020— 

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

20 on or before such date to the extent that 

21 such facilities did not receive an allocation 

22 equal to their full nameplate capacity, and 

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

24 after such date in the order in which such 

25 facilities are placed in service. 


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1 ‘‘(B) UNUTILIZED NATIONAL MEGAWATT CA2 PACITY LIMITATION.—The term ‘unutilized na3 tional megawatt capacity limitation’ means the 

4 excess (if any) of— 

5 ‘‘(i) 6,000 megawatts, over 

6 ‘‘(ii) the aggregate amount of national 

7 megawatt capacity limitation allocated by 

8 the Secretary before January 1, 2021, re9 duced by any amount of such limitation 

10 which was allocated to a facility which was 

11 not placed in service before such date. 

12 ‘‘(C) COORDINATION WITH OTHER PROVI13 SIONS.—In the case of any unutilized national 

14 megawatt capacity limitation allocated by the 

15 Secretary pursuant to this paragraph— 

16 ‘‘(i) such allocation shall be treated for 

17 purposes of this section in the same manner 

18 as an allocation of national megawatt ca19 pacity limitation, and 

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

21 apply to any facility which receives such al22 location.’’. 

23 (b) TRANSFER OF CREDIT BY CERTAIN PUBLIC ENTI24 TIES.— 


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

2 amended— 

3 (A) by redesignating subsection (e) as sub4 section (f), and 

5 (B) by inserting after subsection (d) the fol6 lowing new subsection: 

7 ‘‘(e) TRANSFER OF CREDIT BY CERTAIN PUBLIC ENTI8 TIES.— 

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

10 under subsection (a) for any taxable year— 

11 ‘‘(A) the taxpayer would be a qualified pub12 lic entity, and 

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

14 this paragraph for such taxable year with respect 

15 to all (or any portion specified in such election) 

16 of such credit, 

17 the eligible project partner specified in such election 

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

19 as the taxpayer for purposes of this title with respect 

20 to such credit (or such portion thereof). 

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section— 

23 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The term 

24 ‘qualified public entity’ means— 


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1 ‘‘(i) a Federal, State, or local govern2 ment entity, or any political subdivision, 

3 agency, or instrumentality thereof, 

4 ‘‘(ii) a mutual or cooperative electric 

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

6 section 1381(a)(2), or 

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

8 which has or had received a loan or loan 

9 guarantee under the Rural Electrification 

10 Act of 1936. 

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

12 term ‘eligible project partner’ means— 

13 ‘‘(i) any person responsible for, or par14 ticipating in, the design or construction of 

15 the advanced nuclear power facility to 

16 which the credit under subsection (a) re17 lates, 

18 ‘‘(ii) any person who participates in 

19 the provision of the nuclear steam supply 

20 system to the advanced nuclear power facil21 ity to which the credit under subsection (a) 

22 relates, 

23 ‘‘(iii) any person who participates in 

24 the provision of nuclear fuel to the advanced 


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1 nuclear power facility to which the credit 

2 under subsection (a) relates, or 

3 ‘‘(iv) any person who has an owner4 ship interest in such facility. 

5 ‘‘(3) SPECIAL RULES.— 

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

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

8 is determined at the partnership level— 

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

10 a qualified public entity shall be treated as 

11 the taxpayer with respect to such entity’s 

12 distributive share of such credit, and 

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

14 shall include any partner of the partner15 ship. 

16 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

17 TAKEN INTO ACCOUNT.—In the case of any credit 

18 (or portion thereof) with respect to which an 

19 election is made under paragraph (1), such cred20 it shall be taken into account in the first taxable 

21 year of the eligible project partner ending with, 

22 or after, the qualified public entity’s taxable year 

23 with respect to which the credit was determined. 

24 ‘‘(C) TREATMENT OF TRANSFER UNDER PRI25 VATE USE RULES.—For purposes of section 


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

2 project partner in connection with an election 

3 under this subsection shall not be taken into ac4 count as a private business use.’’. 

5 (2) SPECIAL RULE FOR PROCEEDS OF TRANS6 FERS FOR MUTUAL OR COOPERATIVE ELECTRIC COM7 PANIES.—Section 501(c)(12) of such Code is amended 

8 by adding at the end the following new subparagraph: 

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

10 electric company described in this paragraph or 

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

12 income received or accrued in connection with 

13 an election under section 45J(e)(1) shall be treat14 ed as an amount collected from members for the 

15 sole purpose of meeting losses and expenses.’’. 

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 (b) 

23 shall apply to taxable years beginning after the date 

24 of the enactment of this Act. 


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Union Calendar No. 124 

115TH CONGRESS 

1ST SESSION H. R. 1551 

[Report No. 115–183] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

nuclear power facilities. modify the credit for production from advanced 

JUNE 20, 2017 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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