House advances legislation to provide nuclear production tax credit access to non-profits

The U.S. House of Representatives advanced legislation Tuesday that would expand access to the nuclear production tax credit (PTC) to nonprofits and eliminate the 2020 deadline for the credits.

The bill, introduced by Rep. Tom Rice (R-SC), would amend the Energy Policy Act of 2005, through which the PTC was established.

Under current law, ratepayers to for-profit partners can receive savings from the credit, while ratepayers to nonprofit partners do not. The bill would allow non-profit partners to utilize the credit. The current law also requires that nuclear facilities must enter service by the end of 2020 in order to qualify for the credit, a stipulation the bill would eliminate.

“Investment in nuclear energy is critical to energy independence, national security, and job creation in America,” Rice said. “States like South Carolina recognized the importance of this investment and are leading the way in developing advanced nuclear power facilities, but ambiguities in current law are posing a risk to their full success. Passage of this bill gives these cutting-edge facilities certainty in their investment while creating parity so savings can be passed onto consumers in South Carolina and across the country.”

Four new nuclear power units are currently under construction in South Carolina and Georgia. For each project, one partner is a non-profit entity.

Sen. Tim Scott (R-SC) introduced companion legislation in the Senate.