Rep. Rice, Sen. Scott Introduce Bill to Modify the Nuclear Production Tax Credit, Save Rate Payers Money
WASHINGTON – Congressman Tom Rice (R–S.C.) today introduced bipartisan legislation that could lower energy prices for millions of consumers in South Carolina and across America. This bill amends the United States tax code to allow nonprofit partners in nuclear power facilities to effectively use the nuclear production tax credit (PTC), allowing them to pass rate savings onto consumers.
The nuclear PTC was designed to encourage investment in nuclear energy projects between public–private partnerships and has been essential in attracting new development in nuclear facilities. However, under current law, rate payers to for-profit partners receive savings from the credit, while rate payers to nonprofit partners do not. This bill amends the law to ensure the credit works as it was originally intended to benefit both nonprofit and for-profit investors. Senator Tim Scott (R-S.C.) introduced companion legislation in the Senate.
“Other energy technologies are able to fully use their credits with public-private partnerships and nuclear energy should have the same consideration,” said Congressman Rice. “This bill helps to correct a disparity of current law so savings can be passed on to millions of consumers in South Carolina and across the country who deserve affordable, reliable energy.”
“This is a more responsible and efficient way to deliver the incentives Congress created to construct new, clean nuclear power through public-private partnerships,” said Senator Scott. “South Carolina is leading the nation as a first mover in building advanced nuclear power facilities that help our energy sector to meet the needs and challenges of our state’s 21st century manufacturing economy. Most importantly, it will be a positive change that will benefit millions of South Carolina residents.”
Four new nuclear power units are currently under construction in South Carolina and Georgia, creating tens of thousands of jobs and reducing carbon dioxide emissions. In each new nuclear unit, one of the partners is a nonprofit entity. This legislation would allow these nonprofits to utilize the full amount of the nuclear PTC in these construction projects, allowing them to pass rate savings onto consumers in South Carolina and other states in the southeast.
This bill also removes the requirement that new nuclear facilities be placed into service by the end of 2020 in order to receive the tax credit. This change allows facilities that become operational after 2020 to qualify for the PTC, ensuring that the credit allocation is fulfilled as Congress intended.
Full text of the bill is available here.