{"identifier":"/us/usc/t26/s45J","title":26,"num":"\u00a7\u202f45J.","heading":"Credit for production from advanced nuclear power facilities","text":"\u00a7\u202f45J.\nCredit for production from advanced nuclear power facilities\n(a)\nGeneral rule\nFor purposes of section 38, the advanced nuclear power facility production credit of any taxpayer for any taxable year is equal to the product of\u2014\n(1) 1.8 cents, multiplied by\n(2) the kilowatt hours of electricity\u2014\n(A) produced by the taxpayer at an advanced nuclear power facility during the 8-year period beginning on the date the facility was originally placed in service, and\n(B) sold by the taxpayer to an unrelated person during the taxable year.\n(b)\nNational limitation\n(1)\nIn general\nThe amount of credit which would (but for this subsection and subsection (c)) be allowed with respect to any facility for any taxable year shall not exceed the amount which bears the same ratio to such amount of credit as\u2014\n(A) the national megawatt capacity limitation allocated to the facility, bears to\n(B) the total megawatt nameplate capacity of such facility.\n(2)\nAmount of national limitation\nThe aggregate amount of national megawatt capacity limitation allocated by the Secretary under paragraph (3) shall not exceed 6,000 megawatts.\n(3)\nAllocation of limitation\nThe Secretary shall allocate the national megawatt capacity limitation in such manner as the Secretary may prescribe.\n(4)\nRegulations\nNot later than 6 months after the date of the enactment of or any amendment to this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. Such regulations shall provide a certification process under which the Secretary, after consultation with the Secretary of Energy, shall approve and allocate the national megawatt capacity limitation.\n(5)\nAllocation of unutilized limitation\n(A)\nIn general\nAny unutilized national megawatt capacity limitation shall be allocated by the Secretary under paragraph (3) as rapidly as is practicable after\n(i) first to facilities placed in service on or before such date to the extent that such facilities did not receive an allocation equal to their full nameplate capacity, and\n(ii) then to facilities placed in service after such date in the order in which such facilities are placed in service.\n(B)\nUnutilized national megawatt capacity limitation\nThe term \u201cunutilized national megawatt capacity limitation\u201d means the excess (if any) of\u2014\n(i) 6,000 megawatts, over\n(ii) the aggregate amount of national megawatt capacity limitation allocated by the Secretary before\nJanuary 1, 2021\n(C)\nCoordination with other provisions\nIn the case of any unutilized national megawatt capacity limitation allocated by the Secretary pursuant to this paragraph\u2014\n(i) such allocation shall be treated for purposes of this section in the same manner as an allocation of national megawatt capacity limitation, and\n(ii) subsection (d)(1)(B) shall not apply to any facility which receives such allocation.\n(c)\nOther limitations\n(1)\nAnnual limitation\nThe amount of the credit allowable under subsection (a) (after the application of subsection (b)) for any taxable year with respect to any facility shall not exceed an amount which bears the same ratio to $125,000,000 as\u2014\n(A) the national megawatt capacity limitation allocated under subsection (b) to the facility, bears to\n(B) 1,000.\n(2)\nPhaseout of credit\n(A)\nIn general\nThe amount of the credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of the credit (determined without regard to this paragraph) as\u2014\n(i) the amount by which the reference price (as defined in section 45(e)(2)(C)) for the calendar year in which the sale occurs exceeds 8 cents, bears to\n(ii) 3 cents.\n(B)\nPhaseout adjustment based on inflation\nThe 8 cent amount in subparagraph (A) shall be adjusted by multiplying such amount by the inflation adjustment factor (as defined in section 45(e)(2)(B)) 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.\n(d)\nAdvanced nuclear power facility\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201cadvanced nuclear power facility\u201d means any advanced nuclear facility\u2014\n(A) which is owned by the taxpayer and which uses nuclear energy to produce electricity, and\n(B) which is placed in service after the date of the enactment of this paragraph and before\nJanuary 1, 2021\n(2)\nAdvanced nuclear facility\nFor purposes of paragraph (1), the term \u201cadvanced nuclear facility\u201d means any nuclear facility the reactor design for which is approved after\nDecember 31, 1993\n(e)\nTransfer of credit by certain public entities\n(1)\nIn general\nIf, with respect to a credit under subsection (a) for any taxable year\u2014\n(A) a qualified public entity would be the taxpayer (but for this paragraph), and\n(B) such entity elects the application of this paragraph for such taxable year with respect to all (or any portion specified in such election) of such credit,\nthe 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).\n(2)\nDefinitions\nFor purposes of this subsection\u2014\n(A)\nQualified public entity\nThe term \u201cqualified public entity\u201d means\u2014\n(i) a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof,\n(ii) a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2), or\n(iii) a not-for-profit electric utility which had or has received a loan or loan guarantee under the Rural Electrification Act of 1936.\n(B)\nEligible project partner\nThe term \u201celigible project partner\u201d means any person who\u2014\n(i) is responsible for, or participates in, the design or construction of the advanced nuclear power facility to which the credit under subsection (a) relates,\n(ii) participates in the provision of the nuclear steam supply system to such facility,\n(iii) participates in the provision of nuclear fuel to such facility,\n(iv) is a financial institution providing financing for the construction or operation of such facility, or\n(v) has an ownership interest in such facility.\n(3)\nSpecial rules\n(A)\nApplication to partnerships\nIn the case of a credit under subsection (a) which is determined at the partnership level\u2014\n(i) for purposes of paragraph (1)(A), a qualified public entity shall be treated as the taxpayer with respect to such entity\u2019s distributive share of such credit, and\n(ii) the term \u201celigible project partner\u201d shall include any partner of the partnership.\n(B)\nTaxable year in which credit taken into account\nIn the case of any credit (or portion thereof) with respect to which an election is made under paragraph (1), 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\u2019s taxable year with respect to which the credit was determined.\n(C)\nTreatment of transfer under private use rules\nFor 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.\n(f)\nOther rules to apply\nRules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.","url":"https://projectusc.org/usc/t26/s45J.html","content":[{"t":"sec","id":"/us/usc/t26/s45J","children":[{"t":"num","text":"\u00a7\u202f45J."},{"t":"heading","text":"Credit for production from advanced nuclear power facilities"},{"t":"subsec","id":"/us/usc/t26/s45J/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General rule"},{"t":"chapeau","text":"For purposes of section 38, the advanced nuclear power facility production credit of any taxpayer for any taxable year is equal to the product of\u2014"},{"t":"para","id":"/us/usc/t26/s45J/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" 1.8 cents, multiplied by","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/a/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" the kilowatt hours of electricity\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" produced by the taxpayer at an advanced nuclear power facility during the 8-year period beginning on the date the facility was originally placed in service, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" sold by the taxpayer to an unrelated person during the taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45J/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"National limitation"},{"t":"para","id":"/us/usc/t26/s45J/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The amount of credit which would (but for this subsection and subsection (c)) be allowed with respect to any facility for any taxable year shall not exceed the amount which bears the same ratio to such amount of credit as\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the national megawatt capacity limitation allocated to the facility, bears to","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the total megawatt nameplate capacity of such facility.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Amount of national limitation"},{"t":"content","children":[{"t":"p","text":"The aggregate amount of national megawatt capacity limitation allocated by the Secretary under paragraph (3) shall not exceed 6,000 megawatts.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Allocation of limitation"},{"t":"content","children":[{"t":"p","text":"The Secretary shall allocate the national megawatt capacity limitation in such manner as the Secretary may prescribe.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"Not later than 6 months after the date of the enactment of or any amendment to this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. Such regulations shall provide a certification process under which the Secretary, after consultation with the Secretary of Energy, shall approve and allocate the national megawatt capacity limitation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/b/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Allocation of unutilized limitation"},{"t":"subpara","id":"/us/usc/t26/s45J/b/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Any unutilized national megawatt capacity limitation shall be allocated by the Secretary under paragraph (3) as rapidly as is practicable after ","children":[{"t":"text","text":"December 31, 2020","tail":"\u2014"}]},{"t":"clause","id":"/us/usc/t26/s45J/b/5/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" first to facilities placed in service on or before such date to the extent that such facilities did not receive an allocation equal to their full nameplate capacity, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/b/5/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" then to facilities placed in service after such date in the order in which such facilities are placed in service.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/b/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Unutilized national megawatt capacity limitation"},{"t":"chapeau","text":"The term \u201cunutilized national megawatt capacity limitation\u201d means the excess (if any) of\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/b/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 6,000 megawatts, over","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/b/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the aggregate amount of national megawatt capacity limitation allocated by the Secretary before ","children":[{"t":"text","text":"January 1, 2021","tail":", reduced by any amount of such limitation which was allocated to a facility which was not placed in service before such date."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/b/5/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Coordination with other provisions"},{"t":"chapeau","text":"In the case of any unutilized national megawatt capacity limitation allocated by the Secretary pursuant to this paragraph\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/b/5/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" such allocation shall be treated for purposes of this section in the same manner as an allocation of national megawatt capacity limitation, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/b/5/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" subsection (d)(1)(B) shall not apply to any facility which receives such allocation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45J/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Other limitations"},{"t":"para","id":"/us/usc/t26/s45J/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Annual limitation"},{"t":"chapeau","text":"The amount of the credit allowable under subsection (a) (after the application of subsection (b)) for any taxable year with respect to any facility shall not exceed an amount which bears the same ratio to $125,000,000 as\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the national megawatt capacity limitation allocated under subsection (b) to the facility, bears to","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 1,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Phaseout of credit"},{"t":"subpara","id":"/us/usc/t26/s45J/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The amount of the credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of the credit (determined without regard to this paragraph) as\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/c/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the amount by which the reference price (as defined in section 45(e)(2)(C)) for the calendar year in which the sale occurs exceeds 8 cents, bears to","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/c/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 3 cents.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Phaseout adjustment based on inflation"},{"t":"content","children":[{"t":"p","text":"The 8 cent amount in subparagraph (A) shall be adjusted by multiplying such amount by the inflation adjustment factor (as defined in section 45(e)(2)(B)) 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45J/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Advanced nuclear power facility"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s45J/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201cadvanced nuclear power facility\u201d means any advanced nuclear facility\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/d/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" which is owned by the taxpayer and which uses nuclear energy to produce electricity, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/d/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" which is placed in service after the date of the enactment of this paragraph and before ","children":[{"t":"text","text":"January 1, 2021","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Advanced nuclear facility"},{"t":"content","children":[{"t":"p","text":"For purposes of paragraph (1), the term \u201cadvanced nuclear facility\u201d means any nuclear facility the reactor design for which is approved after ","children":[{"t":"text","text":"December 31, 1993","tail":", by the Nuclear Regulatory Commission (and such design or a substantially similar design of comparable capacity was not approved on or before such date)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45J/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Transfer of credit by certain public entities"},{"t":"para","id":"/us/usc/t26/s45J/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"If, with respect to a credit under subsection (a) for any taxable year\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a qualified public entity would be the taxpayer (but for this paragraph), and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" such entity elects the application of this paragraph for such taxable year with respect to all (or any portion specified in such election) of such credit,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"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).","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this subsection\u2014"},{"t":"subpara","id":"/us/usc/t26/s45J/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Qualified public entity"},{"t":"chapeau","text":"The term \u201cqualified public entity\u201d means\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2), or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" a not-for-profit electric utility which had or has received a loan or loan guarantee under the Rural Electrification Act of 1936.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Eligible project partner"},{"t":"chapeau","text":"The term \u201celigible project partner\u201d means any person who\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is responsible for, or participates in, the design or construction of the advanced nuclear power facility to which the credit under subsection (a) relates,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" participates in the provision of the nuclear steam supply system to such facility,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" participates in the provision of nuclear fuel to such facility,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/B/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" is a financial institution providing financing for the construction or operation of such facility, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/2/B/v","children":[{"t":"num","text":"(v)"},{"t":"content","text":" has an ownership interest in such facility.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s45J/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Special rules"},{"t":"subpara","id":"/us/usc/t26/s45J/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Application to partnerships"},{"t":"chapeau","text":"In the case of a credit under subsection (a) which is determined at the partnership level\u2014"},{"t":"clause","id":"/us/usc/t26/s45J/e/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" for purposes of paragraph (1)(A), a qualified public entity shall be treated as the taxpayer with respect to such entity\u2019s distributive share of such credit, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s45J/e/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the term \u201celigible project partner\u201d shall include any partner of the partnership.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Taxable year in which credit taken into account"},{"t":"content","children":[{"t":"p","text":"In the case of any credit (or portion thereof) with respect to which an election is made under paragraph (1), 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\u2019s taxable year with respect to which the credit was determined.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s45J/e/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Treatment of transfer under private use rules"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s45J/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Other rules to apply"},{"t":"content","children":[{"t":"p","text":"Rules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}