Nuclear Powers America Act would provide investment tax credit for nuclear plants
A bill introduced to the House of Representatives this week by U.S. Rep. Darin LaHood (R-IL) seeks to promote nuclear power through incentivization, opening a new investment tax credit for potential investments.
The bill builds itself on the reality that many other types of energy are already encouraged by similar tax credits: solar, wind, geothermal, fuel cell and combined heat and power all benefit from such incentives, but nuclear has fallen by the wayside. The Nuclear Powers America Act of 2019 would rectify that with a 30 percent credit for refueling costs and qualified nuclear power plant capital expenditures each year through 2023. After that, it would be gradually reduced each year until 2026, when it settles at a 10 percent credit.
“Our nuclear plants are currently facing unprecedented challenges, with a number of plants facing financial distress in Illinois alone,” LaHood, whose state houses six nuclear plants, said.. “Nuclear energy provides twenty percent of our nation’s electricity, and a majority of our emissions-free generation, which is why it is so important that we strengthen these plants through capital investment. This bill will promote just that, by creating a tax credit for continued investment in nuclear plants this will ensure that our nation’s electrical system stays strong. As a strong proponent of an all-of-the-above energy approach, I understand the importance of a level playing field and a diversified energy portfolio for both national security and energy independence.”
In all, LaHood believes the bill could protect as many as 475,000 jobs — more than 5,900 of which reside in Illinois alone. He also estimated that the results of this act’s passage would be three times the clean energy produced in the United States at half the cost per megawatt hour of other clean energy tax credits.
