[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4024 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4024
To amend the Internal Revenue Code of 1986 to establish a tax credit
for production of electricity using nuclear power.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 21, 2021
Mr. Pascrell (for himself, Mr. Suozzi, Mr. Katko, Mr. Danny K. Davis of
Illinois, Mr. Brown, Mr. Ruppersberger, Mrs. Bustos, Mr. Michael F.
Doyle of Pennsylvania, and Mr. Fitzpatrick) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax credit
for production of electricity using nuclear power.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Zero-Emission Nuclear Power
Production Credit Act of 2021''.
SEC. 2. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an
amount equal to the amount by which--
``(1) the product of--
``(A) 1.5 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a
qualified nuclear power facility, and
``(ii) sold by the taxpayer to an unrelated
person during the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of
this section, the term `qualified nuclear power facility' means
any nuclear facility--
``(A) which is owned by the taxpayer and which uses
nuclear energy to produce electricity,
``(B) which is not described in section 168(i)(10),
and
``(C) which is not an advanced nuclear power
facility, as defined in subsection (d)(1) of section
45J, or which has not received an allocation under
subsection (b) of such section.
``(2) Reduction amount.--
``(A) In general.--For purposes of this section,
the term `reduction amount' means, with respect to any
qualified nuclear power facility for any taxable year,
the amount equal to the lesser of--
``(i) the amount determined under
subsection (a)(1), or
``(ii) the amount equal to 80 percent of
the excess of--
``(I) subject to subparagraph (B),
the gross receipts from any electricity
produced by such facility and sold to
an unrelated person during such taxable
year, over
``(II) the amount equal to the
product of--
``(aa) 2.5 cents,
multiplied by
``(bb) the amount
determined under subsection
(a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--The amount determined
under subparagraph (A)(ii)(I) shall include any
amount received by the taxpayer during the
taxable year with respect to the qualified
nuclear power facility from a zero-emission
credit program unless the amount received by
the taxpayer is subject to reduction--
``(I) by the full amount of the
credit determined under this section,
or
``(II) by any lesser amount if such
amount entirely offsets the amount
received from a zero-emission credit
program.
``(ii) Zero-emission credit program.--For
purposes of this subparagraph, the term `zero-
emission credit program' means any State or
local government program that provides payments
to a qualified nuclear power facility for, in
whole or in part, the zero-emission, zero-
carbon, or air quality attributes of any
portion of the electricity produced by such
facility.
``(3) Electricity.--For purposes of this section (with the
exception of subsection (d)(3)), the term `electricity' means
the energy produced by a qualified nuclear power facility from
the conversion of nuclear fuel into electric power.
``(c) Election for Direct Payment.--
``(1) In general.--In the case of a taxpayer making an
election (at such time and in such manner as the Secretary may
provide) under this subsection with respect to any portion of
the credit which would (without regard to this subsection) be
determined under subsection (a) with respect to such taxpayer,
such taxpayer shall be treated as making a payment against the
tax imposed by subtitle A for the taxable year equal to the
amount of such portion.
``(2) Timing.--The payment described in paragraph (1) shall
be treated as made on the later of the due date of the return
of tax for the taxable year or the date on which such return is
filed.
``(3) Exclusion from gross income.--Gross income of the
taxpayer shall be determined without regard to this subsection.
``(4) Denial of double benefit.--Solely for purposes of
section 38, in the case of a taxpayer making an election under
this subsection, the credit determined under subsection (a)
shall be reduced by the amount of the portion of such credit
with respect to which the taxpayer makes such election.
``(5) Determination of eligibility for direct payments.--
For purposes of determining eligibility of a taxpayer for a
direct payment under paragraph (1), the Secretary shall have
the authority to request such information from the taxpayer as
the Secretary may require.
``(d) Other Rules.--
``(1) Inflation adjustment.--The 1.5 cent amount in
subsection (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying
such amount by the inflation adjustment factor (as determined
under section 45(e)(2)) 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.
``(2) Special rules.--Rules similar to the rules of
paragraphs (1), (3), (4), and (5) of section 45(e) shall apply
for purposes of this section.
``(3) Phaseout of credit.--If the Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, determines that the
annual greenhouse gas emissions from electricity production in
the United States for a calendar year are equal to or less than
50 percent of the annual greenhouse gas emissions from
electricity production in the United States for calendar year
2020, the amount of the credit determined under the subsection
(a) shall be reduced by an amount equal to the product of--
``(A) the amount of credit determined under the
subsection (a), as determined before application of
this paragraph, multiplied by
``(B) an amount (expressed as a percentage) equal
to twice the percentage amount that the percentage
determined by the Secretary pursuant to this paragraph
exceeds 50 percent.
``(4) Wage requirements.--The taxpayer shall ensure, with
respect to a qualified nuclear power facility, that any
laborers and mechanics employed by contractors and
subcontractors in the construction, repair, alteration, or
maintenance of such facility shall be paid wages at rates not
less than the prevailing rates for construction, alteration, or
repair of a similar character in the locality as determined by
the Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(e) Recapture.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Energy and the Secretary of Labor, shall, by
regulations, provide for recapturing the benefit of any credit
allowable under subsection (a) for any taxable year if the
Secretary determines that the wage requirements described in
subsection (d)(4) have been violated.
``(2) Investigation.--Upon receipt of a complaint or its
own initiative, the Secretary, in consultation with the
Secretary of Energy and the Secretary of Labor, shall request
and review the payroll records of contractors and
subcontractors engaged in the performance of any construction,
repair, alteration, or maintenance with respect to a qualified
nuclear power facility, and interview individuals employed by
such contractors and subcontractors, to determine whether the
requirements of paragraph (1)(A) have been met.
``(3) Administration and enforcement.--With respect to the
administration and enforcement of the standards in paragraph
(1)(A), the Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950
(64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40,
United States Code.
``(f) Termination.--This section shall not apply to taxable years
beginning after December 31, 2030.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (32), by striking ``plus'' at the
end,
(B) in paragraph (33), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(34) the zero-emission nuclear power production credit
determined under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 45U. Zero-emission nuclear power production credit.''.
(c) Report.--Not later than January 1, 2024, the Comptroller
General of the United States shall submit to Congress a report with
respect to the credits allowed for qualified nuclear power facilities
under section 45U of the Internal Revenue Code of 1986 (as added by
subsection (a)), which shall include--
(1) an evaluation of the effectiveness of the credits
allowed under such section in regards to ensuring grid
reliability while avoiding emissions of carbon dioxide,
nitrogen oxides, sulfur oxides, particulate matter, and
hazardous air pollutants;
(2) a quantification of the ratepayer savings achieved as a
result of the credits allowed under such section; and
(3) any recommendations to renew or expand the credits
allowed under such section.
(d) Effective Date.--This section shall apply to electricity
produced and sold after December 31, 2020, in taxable years beginning
after such date.
SEC. 3. USE OF QUALIFIED APPRENTICES.
(a) In General.--All contractors and subcontractors engaged in the
performance of construction, alteration, or repair work on any
applicable project shall, subject to subsection (b), ensure that not
less than 15 percent of the total labor hours of such work be performed
by qualified apprentices.
(b) Apprentice-to-Journeyworker Ratio.--The requirement under
subsection (a) shall be subject to any applicable requirements for
apprentice-to-journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
(c) Participation.--Each contractor and subcontractor who employs 4
or more individuals to perform construction, alteration, or repair work
on an applicable project shall employ 1 or more qualified apprentices
to perform such work.
(d) Exception.--Notwithstanding any other provision in this
section, this section shall not apply in the case of a taxpayer who--
(1) demonstrates a lack of availability of qualified
apprentices in the geographic area of the construction,
alteration, or repair work; and
(2) makes a good faith effort, and its contractors and
subcontractors make a good faith effort, to comply with the
requirements of this section.
(e) Definitions.--In this section:
(1) Applicable project.--The term ``applicable project''
means, with respect to--
(A) subsection (e)(7)(A)(ii) of section 30C of the
Internal Revenue Code of 1986,
(B) subsection (f)(8)(A)(ii) of section 45Q of such
Code,
(C) subsection (b)(1)(A)(iv)(II) of section 45U of
such Code,
(D) subsections (b)(3)(A)(iv)(II) and (c)(1)(B)(ii)
of section 48D of such Code, and
(E) subsection 9c)(1)(E)(ii) of section179D of such
Code,
any property, equipment, or facility for which a credit is
allowed under such sections.
(2) Labor hours.--The term ``labor hours''--
(A) means the total number of hours devoted to the
performance of construction, alteration, or repair work
by employees of the contractor or subcontractor; and
(B) excludes any hours worked by--
(i) foremen;
(ii) superintendents;
(iii) owners; or
(iv) persons employed in a bona fide
executive, administrative, or professional
capacity (within the meaning of those terms in
part 541 of title 29, Code of Federal
Regulations).
(3) Qualified apprentice.--The term ``qualified
apprentice'' means an individual who is an employee of the
contractor or subcontractor and who is participating in a
registered apprenticeship program, as defined in section
3131(e)(3)(B) of the Internal Revenue Code of 1986.
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