Zero-Emission Nuclear Power Production Credit Act of 2021
Bill: S.2291 | Sponsor: Sen. Cardin, Benjamin L. (D-MD)
Policy area: Taxation

Summary:
Zero-Emission Nuclear Power Production Credit Act of 2021
This bill allows a new business-related tax credit through 2031 for the production of electricity from zero-emission nuclear power. It also allows an election for direct payments of such credit and requires a recapture of the credit for contractors who pay their laborers or mechanics less than the prevailing wage rate.
Contractors must ensure that at least 15% of their work force is composed of qualified apprentices.
The bill requires the Government Accountability Office to report on the effectiveness the tax credit.

To amend the Internal Revenue Code of 1986 to establish a tax credit 
           for production of electricity using nuclear power.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Zero-Emission Nuclear Power 
Production Credit Act of 2021''.

SEC. 2. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an 
amount equal to the amount by which--
            ``(1) the product of--
                    ``(A) 1.5 cents, multiplied by
                    ``(B) the kilowatt hours of electricity--
                            ``(i) produced by the taxpayer at a 
                        qualified nuclear power facility, and
                            ``(ii) sold by the taxpayer to an unrelated 
                        person during the taxable year, exceeds
            ``(2) the reduction amount for such taxable year.
    ``(b) Definitions.--
            ``(1) Qualified nuclear power facility.--For purposes of 
        this section, the term `qualified nuclear power facility' means 
        any nuclear facility--
                    ``(A) which is owned by the taxpayer and which uses 
                nuclear energy to produce electricity,
                    ``(B) which is not described in section 168(i)(10), 
                and
                    ``(C) which is not an advanced nuclear power 
                facility, as defined in subsection (d)(1) of section 
                45J, or which has not received an allocation under 
                subsection (b) of such section.
            ``(2) Reduction amount.--
                    ``(A) In general.--For purposes of this section, 
                the term `reduction amount' means, with respect to any 
                qualified nuclear power facility for any taxable year, 
                the amount equal to the lesser of--
                            ``(i) the amount determined under 
                        subsection (a)(1), or
                            ``(ii) the amount equal to 80 percent of 
                        the excess of--
                                    ``(I) subject to subparagraph (B), 
                                the gross receipts from any electricity 
                                produced by such facility and sold to 
                                an unrelated person during such taxable 
                                year, over
                                    ``(II) the amount equal to the 
                                product of--
                                            ``(aa) 2.5 cents, 
                                        multiplied by
                                            ``(bb) the amount 
                                        determined under subsection 
                                        (a)(1)(B).
                    ``(B) Treatment of certain receipts.--
                            ``(i) In general.--The amount determined 
                        under subparagraph (A)(ii)(I) shall include any 
                        amount received by the taxpayer during the 
                        taxable year with respect to the qualified 
                        nuclear power facility from a zero-emission 
                        credit program unless the amount received by 
                        the taxpayer is subject to reduction--
                                    ``(I) by the full amount of the 
                                credit determined under this section, 
                                or
                                    ``(II) by any lesser amount if such 
                                amount entirely offsets the amount 
                                received from a zero-emission credit 
                                program.
                            ``(ii) Zero-emission credit program.--For 
                        purposes of this subparagraph, the term `zero-
                        emission credit program' means any State or 
                        local government program that provides payments 
                        to a qualified nuclear power facility for, in 
                        whole or in part, the zero-emission, zero-
                        carbon, or air quality attributes of any 
                        portion of the electricity produced by such 
                        facility.
            ``(3) Electricity.--For purposes of this section (with the 
        exception of subsection (d)(3)), the term `electricity' means 
        the energy produced by a qualified nuclear power facility from 
        the conversion of nuclear fuel into electric power.
    ``(c) Election for Direct Payment.--
            ``(1) In general.--In the case of a taxpayer making an 
        election (at such time and in such manner as the Secretary may 
        provide) under this subsection with respect to any portion of 
        the credit which would (without regard to this subsection) be 
        determined under subsection (a) with respect to such taxpayer, 
        such taxpayer shall be treated as making a payment against the 
        tax imposed by subtitle A for the taxable year equal to the 
        amount of such portion.
            ``(2) Timing.--The payment described in paragraph (1) shall 
        be treated as made on the later of the due date of the return 
        of tax for the taxable year or the date on which such return is 
        filed.
            ``(3) Exclusion from gross income.--Gross income of the 
        taxpayer shall be determined without regard to this subsection.
            ``(4) Denial of double benefit.--Solely for purposes of 
        section 38, in the case of a taxpayer making an election under 
        this subsection, the credit determined under subsection (a) 
        shall be reduced by the amount of the portion of such credit 
        with respect to which the taxpayer makes such election.
            ``(5) Exclusion of tax-exempt entities.--This subsection 
        shall not apply to any entity described in section 168(h)(2).
    ``(d) Other Rules.--
            ``(1) Inflation adjustment.--In the case of calendar years 
        beginning after 2021, the 1.5 cent amount in subsection 
        (a)(1)(A) and the 2.5 cent amount in subsection 
        (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying 
        such amount by the inflation adjustment factor (as determined 
        under section 45(e)(2), as applied by substituting `calendar 
        year 2020' for `calendar year 1992' in subparagraph (B) 
        thereof) for the calendar year in which the sale occurs. If any 
        amount as increased under the preceding sentence is not a 
        multiple of 0.1 cent, such amount shall be rounded to the 
        nearest multiple of 0.1 cent.
            ``(2) Special rules.--Rules similar to the rules of 
        paragraphs (1), (3), (4), and (5) of section 45(e) shall apply 
        for purposes of this section.
            ``(3) Phaseout of credit.--If the Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, determines that the 
        annual greenhouse gas emissions from electricity production in 
        the United States for a calendar year are equal to or less than 
        50 percent of the annual greenhouse gas emissions from 
        electricity production in the United States for calendar year 
        2020, the amount of the credit determined under the subsection 
        (a) shall be reduced by an amount equal to the product of--
                    ``(A) the amount of credit determined under the 
                subsection (a), as determined before application of 
                this paragraph, multiplied by
                    ``(B) an amount (expressed as a percentage) equal 
                to twice the percentage amount that the percentage 
                determined by the Secretary pursuant to this paragraph 
                exceeds 50 percent.
            ``(4) Ultimate purchaser.--For purposes of this section, 
        electricity produced by the taxpayer will be treated as sold to 
        an unrelated person if the ultimate purchaser of such 
        electricity is unrelated to such taxpayer.
    ``(e) Recapture.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Energy and the Secretary of Labor, shall, by 
        regulations, provide for recapturing the benefit of any credit 
        allowable under subsection (a) for any taxable year if the 
        Secretary determines that--
                    ``(A) any contractor or subcontractor has failed to 
                pay a laborer or mechanic employed by the contractor or 
                subcontractor in the performance of any construction, 
                repair, alteration, or maintenance with respect to the 
                qualified nuclear power facility during such taxable 
                year wages at rates not less than the rates prevailing 
                on projects of a similar character in the locality as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code,
                    ``(B) any such contractor or subcontractor has 
                failed to make the records required under paragraph (2) 
                available to the Secretary for the purposes described 
                in such paragraph, or
                    ``(C) any contractor or subcontractor has failed to 
                satisfy the requirements under subsection (f) during 
                such taxable year.
            ``(2) Investigation.--Upon receipt of a complaint or its 
        own initiative, the Secretary, in consultation with the 
        Secretary of Energy and the Secretary of Labor, shall request 
        and review the payroll records of contractors and 
        subcontractors engaged in the performance of any construction, 
        repair, alteration, or maintenance with respect to a qualified 
        nuclear power facility, and interview individuals employed by 
        such contractors and subcontractors, to determine whether the 
        requirements of paragraph (1)(A) and (1)(C) have been met.
            ``(3) Administration and enforcement.--With respect to the 
        administration and enforcement of the standards in paragraph 
        (1)(A) and (1)(C), the Secretary of Labor shall have the 
        authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
    ``(f) Use of Qualified Apprentices.--
            ``(1) In general.--All contractors and subcontractors 
        engaged in the performance of construction, repair, alteration, 
        or maintenance with respect to the qualified nuclear power 
        facility shall, subject to paragraph (2), ensure that not less 
        than 15 percent of the total labor hours of such work be 
        performed by qualified apprentices.
            ``(2) Apprentice-to-journeyworker ratio.--The requirement 
        under paragraph (1) shall be subject to any applicable 
        requirements for apprentice-to-journeyworker ratios of the 
        Department of Labor or the applicable State apprenticeship 
        agency.
            ``(3) Participation.--Each contractor and subcontractor who 
        employs 4 or more individuals to perform construction, repair, 
        alteration, or maintenance with respect to the qualified 
        nuclear power facility shall employ 1 or more qualified 
        apprentices to perform such work.
            ``(4) Exception.--Notwithstanding any other provision in 
        this subsection, this section shall not apply in the case of a 
        taxpayer who--
                    ``(A) demonstrates a lack of availability of 
                qualified apprentices in the geographic area of the 
                construction, repair, alteration, or maintenance; and
                    ``(B) makes a good faith effort, and its 
                contractors and subcontractors make a good faith 
                effort, to comply with the requirements of this 
                subsection.
            ``(5) Definitions.--In this subsection:
                    ``(A) Labor hours.--The term `labor hours'--
                            ``(i) means the total number of hours 
                        devoted to the performance of construction, 
                        repair, alteration, or maintenance by employees 
                        of the contractor or subcontractor; and
                            ``(ii) excludes any hours worked by--
                                    ``(I) foremen;
                                    ``(II) superintendents;
                                    ``(III) owners; or
                                    ``(IV) persons employed in a bona 
                                fide executive, administrative, or 
                                professional capacity (within the 
                                meaning of those terms in part 541 of 
                                title 29, Code of Federal Regulations).
                    ``(B) Qualified apprentice.--The term `qualified 
                apprentice' means an individual who is an employee of 
                the contractor or subcontractor and who is 
                participating in a registered apprenticeship program, 
                as defined in section 3131(e)(3)(B).
    ``(g) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2031.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in paragraph (32), by striking ``plus'' at the 
                end,
                    (B) in paragraph (33), by striking the period at 
                the end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(34) the zero-emission nuclear power production credit 
        determined under section 45U(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45U. Zero-emission nuclear power production credit.''.
    (c) Report.--Not later than January 1, 2025, the Comptroller 
General of the United States shall submit to Congress a report with 
respect to the credits allowed for qualified nuclear power facilities 
under section 45U of the Internal Revenue Code of 1986 (as added by 
subsection (a)), which shall include--
            (1) an evaluation of the effectiveness of the credits 
        allowed under such section in regards to ensuring grid 
        reliability while avoiding emissions of carbon dioxide, 
        nitrogen oxides, sulfur oxides, particulate matter, and 
        hazardous air pollutants;
            (2) a quantification of the ratepayer savings achieved as a 
        result of the credits allowed under such section; and
            (3) any recommendations to renew or expand the credits 
        allowed under such section.
    (d) Effective Date.--This section shall apply to electricity 
produced and sold after December 31, 2021, in taxable years beginning 
after such date.
                                 <all>