Tax Credit Opportunities and Funding for Nuclear Projects in the United States
Key Ideas
- The Inflation Reduction Act has created tax credit opportunities for both existing and new nuclear projects in the U.S.
- Section 45U provides a zero-emission nuclear power production credit, while Section 45V offers a clean hydrogen production credit for technologies like pink hydrogen.
- Section 45Y and Section 48E provide technology-neutral production and investment tax credits for clean electricity generation facilities.
- The Department of Energy has allocated $700 million for the production of high-assay low-enriched uranium to support new nuclear technologies like small modular reactors.
The article highlights the tax credit opportunities and funding available for nuclear projects in the United States under the Inflation Reduction Act (IRA). It emphasizes the significance of these tax credits in financing plans for new nuclear projects and additional capital opportunities for operating projects. The tax credits discussed include Section 45U, which provides a zero-emission nuclear power production credit, and Section 45V, offering a clean hydrogen production credit that can support the development of technologies like pink hydrogen. Additionally, Section 45Y and Section 48E provide technology-neutral production and investment tax credits for clean electricity generation facilities, aiming to incentivize clean energy production. The Department of Energy has also earmarked $700 million for the production of high-assay low-enriched uranium (HALEU) to support newer nuclear technologies, such as small modular reactors. This funding is crucial for meeting the uranium fuel demands of advanced reactors expected to come online in the future.