Title: Nuclear Powers America Act of 2019
Policy area: Taxation

Summary:
Nuclear Powers America Act of 2019
This bill allows a tax credit for investments in qualified nuclear energy property placed in service before January 1, 2026. The credit applies to any amounts paid or incurred for refueling or other specified expenditures for a nuclear power plant for which an application for license renewal was or will be submitted to the Nuclear Regulatory Commission before January 1, 2026.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2314 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2314

To amend the Internal Revenue Code of 1986 to provide for an investment 
   tax credit related to the production of electricity from nuclear 
                                energy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2019

  Mr. LaHood (for himself, Mr. Kinzinger, Mr. Fitzpatrick, Mr. Rodney 
    Davis of Illinois, Mrs. Bustos, Mr. Williams, Mr. Marchant, Mr. 
 Smucker, Mr. Katko, Mr. Brown of Maryland, Mr. Ruppersberger, and Mr. 
    Bost) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for an investment 
   tax credit related to the production of electricity from nuclear 
                                energy.

    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 ``Nuclear Powers America Act of 
2019''.

SEC. 2. ENERGY CREDIT FOR NUCLEAR ENERGY PROPERTY.

    (a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code 
of 1986 is amended in clause (vi) by striking ``or'', by inserting 
``or'' at the end of clause (vii), and by adding at the end the 
following new clause:
                            ``(viii) qualified nuclear energy 
                        property,''.
    (b) Eligible for 30-Percent Credit.--Section 48(a)(2)(A)(i) of such 
Code is amended by striking ``and'' in subclause (III) and by adding at 
the end the following new subclause:
                                    ``(V) energy property described in 
                                paragraph (3)(A)(viii) but only with 
                                respect to property placed in service 
                                before January 1, 2026, and''.
    (c) Qualified Nuclear Energy Property.--Section 48(c) of such Code 
is amended by adding at the end the following new paragraph:
            ``(5) Qualified nuclear energy property.--
                    ``(A) In general.--The term `qualified nuclear 
                energy property' means any amounts paid or incurred for 
                the refueling of, and any other expenditures described 
                in section 263(a) with respect to, a qualifying nuclear 
                power plant.
                    ``(B) Qualifying nuclear power plant.--The term 
                `qualifying nuclear power plant' means a nuclear power 
                plant which--
                            ``(i) submitted an application for license 
                        renewal to the Nuclear Regulatory Commission in 
                        accordance with part 54 of title 10, Code of 
                        Federal Regulations, before January 1, 2026, or
                            ``(ii) certified to the Secretary (at such 
                        time and in such form and in such manner as the 
                        Secretary prescribes) that such plant will 
                        submit an application for license renewal to 
                        the Nuclear Regulatory Commission in accordance 
                        with part 54 of title 10, Code of Federal 
                        Regulations, before January 1, 2026.
                    ``(C) Special rules.--
                            ``(i) Basis.--For purposes of subsection 
                        (a), the cumulative amounts paid or incurred by 
                        the taxpayer during the taxable year with 
                        respect to a qualifying nuclear power plant, 
                        which are properly chargeable to capital 
                        account, shall be treated as the basis of the 
                        qualified nuclear energy property placed in 
                        service for that taxable year.
                            ``(ii) Placed in service.--For purposes of 
                        subsection (a), qualified nuclear energy 
                        property shall be treated as having been placed 
                        in service on the last day of the taxable year 
                        in which the taxpayer pays or incurs such 
                        amounts described in clause (i).
                            ``(iii) Recapture.--The Secretary shall, by 
                        regulations, provide for recapturing the 
                        benefit of any credit allowable under 
                        subsection (a) to any qualifying nuclear power 
                        plant which made a certification pursuant to 
                        subparagraph (B) but does not file an 
                        application of license renewal to the Nuclear 
                        Regulatory Commission in accordance with part 
                        54 of title 10, Code of Federal Regulations, 
                        before January 1, 2026.''.
    (d) Phaseout of 30-Percent Credit Rate for Nuclear Energy 
Property.--Section 48(a) of such Code is amended by adding at the end 
the following new paragraph:
            ``(8) Phaseout for qualified nuclear energy property.--In 
        the case of qualified nuclear energy property, the energy 
        percentage determined under paragraph (2) shall be equal to--
                    ``(A) in the case of any property placed in service 
                after December 31, 2023, and before January 1, 2025, 26 
                percent, and
                    ``(B) in the case of any property placed in service 
                after December 31, 2024, and before January 1, 2026, 22 
                percent.''.
    (e) Coordination With Credit for Production From Advanced Nuclear 
Power Facilities.--The last sentence of section 48(a)(3) is amended by 
inserting ``or 45J'' after ``section 45''.
    (f) Transfer of Credit by Certain Public Entities.--
            (1) In general.--Section 48 of such Code is amended by 
        adding at the end the following new subsection:
    ``(e) Special Rule for Qualified Nuclear Energy Property.--
            ``(1) In general.--In the case of any qualified nuclear 
        energy property, if, with respect to a credit under subsection 
        (a) for any taxable year--
                    ``(A) the taxpayer would be a qualified public 
                entity, and
                    ``(B) such entity elects the application of this 
                subsection for such taxable year with respect to all 
                (or any portion specified in such election) of such 
                credit, the eligible project partner specified in such 
                election (and not the qualified public entity) shall be 
                treated as the taxpayer for purposes of this title with 
                respect to such credit (or such portion thereof).
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Qualified public entity.--The term `qualified 
                public entity' means--
                            ``(i) a Federal, State, or local government 
                        entity, or any political subdivision, agency, 
                        or instrumentality thereof,
                            ``(ii) a mutual or cooperative electric 
                        company described in section 501(c)(12) or 
                        section 1381(a)(2), or
                            ``(iii) a not-for-profit electric utility 
                        which has or had received a loan or loan 
                        guarantee under the Rural Electrification Act 
                        of 1936.
                    ``(B) Eligible project partner.--The term `eligible 
                project partner' means--
                            ``(i) any person responsible for operating, 
                        maintaining, or repairing the qualifying 
                        nuclear power plant to which the credit under 
                        subsection (a) relates,
                            ``(ii) any person who participates in the 
                        provision of the nuclear steam supply system to 
                        the qualifying nuclear power plant to which the 
                        credit under subsection (a) relates,
                            ``(iii) any person who participates in the 
                        provision of nuclear fuel to the qualifying 
                        nuclear power plant to which the credit under 
                        subsection (a) relates, or
                            ``(iv) any person who has an ownership 
                        interest in such facility.
            ``(3) Special rules.--
                    ``(A) Application to partnerships.--In the case of 
                a credit under subsection (a) which is determined with 
                respect to qualified nuclear energy property at the 
                partnership level--
                            ``(i) for purposes of paragraph (1)(A), a 
                        qualified public entity shall be treated as the 
                        taxpayer with respect to such entity's 
                        distributive share of such credit, and
                            ``(ii) the term `eligible project partner' 
                        shall include any partner of the partnership.
                    ``(B) Taxable year in which credit taken into 
                account.--In the case of any credit (or portion 
                thereof) with respect to which an election is made 
                under subsection (e), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the qualified 
                public entity's taxable year with respect to which the 
                credit was determined.
                    ``(C) Treatment of transfer under private use 
                rules.--For purposes of section 141(b)(1), any benefit 
                derived by an eligible project partner in connection 
                with an election under this subsection shall not be 
                taken into account as a private business use.''.
            (2) Special rule for proceeds of transfers for mutual or 
        cooperative electric companies.--Section 501(c)(12)(I) of such 
        Code is amended by inserting ``or 48(e)(1)'' after ``section 
        45J(e)(1)''.
    (g) Conforming Amendment.--Section 48(a)(2)(A) of such Code is 
amended by striking ``and (7)'' and inserting ``, (7), and (8)''.
    (h) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2018, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the 
enactment of the Revenue Reconciliation Act of 1990).
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