[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2291 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2291
To amend the Internal Revenue Code of 1986 to establish a tax credit
for production of electricity using nuclear power.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 24, 2021
Mr. Cardin (for himself, Mr. Manchin, Mr. Carper, Mr. Whitehouse, and
Mr. Booker) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
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) Exclusion of tax-exempt entities.--This subsection
shall not apply to any entity described in section 168(h)(2).
``(d) Other Rules.--
``(1) Inflation adjustment.--In the case of calendar years
beginning after 2021, 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), as applied by substituting `calendar
year 2020' for `calendar year 1992' in subparagraph (B)
thereof) 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) Ultimate purchaser.--For purposes of this section,
electricity produced by the taxpayer will be treated as sold to
an unrelated person if the ultimate purchaser of such
electricity is unrelated to such taxpayer.
``(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--
``(A) any contractor or subcontractor has failed to
pay a laborer or mechanic employed by the contractor or
subcontractor in the performance of any construction,
repair, alteration, or maintenance with respect to the
qualified nuclear power facility during such taxable
year wages at rates not less than the rates prevailing
on projects 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,
``(B) any such contractor or subcontractor has
failed to make the records required under paragraph (2)
available to the Secretary for the purposes described
in such paragraph, or
``(C) any contractor or subcontractor has failed to
satisfy the requirements under subsection (f) during
such taxable year.
``(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) and (1)(C) have been met.
``(3) Administration and enforcement.--With respect to the
administration and enforcement of the standards in paragraph
(1)(A) and (1)(C), 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) Use of Qualified Apprentices.--
``(1) In general.--All contractors and subcontractors
engaged in the performance of construction, repair, alteration,
or maintenance with respect to the qualified nuclear power
facility shall, subject to paragraph (2), ensure that not less
than 15 percent of the total labor hours of such work be
performed by qualified apprentices.
``(2) Apprentice-to-journeyworker ratio.--The requirement
under paragraph (1) shall be subject to any applicable
requirements for apprentice-to-journeyworker ratios of the
Department of Labor or the applicable State apprenticeship
agency.
``(3) Participation.--Each contractor and subcontractor who
employs 4 or more individuals to perform construction, repair,
alteration, or maintenance with respect to the qualified
nuclear power facility shall employ 1 or more qualified
apprentices to perform such work.
``(4) Exception.--Notwithstanding any other provision in
this subsection, this section shall not apply in the case of a
taxpayer who--
``(A) demonstrates a lack of availability of
qualified apprentices in the geographic area of the
construction, repair, alteration, or maintenance; and
``(B) makes a good faith effort, and its
contractors and subcontractors make a good faith
effort, to comply with the requirements of this
subsection.
``(5) Definitions.--In this subsection:
``(A) Labor hours.--The term `labor hours'--
``(i) means the total number of hours
devoted to the performance of construction,
repair, alteration, or maintenance by employees
of the contractor or subcontractor; and
``(ii) 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).
``(B) 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).
``(g) Termination.--This section shall not apply to taxable years
beginning after December 31, 2031.''.
(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, 2025, 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, 2021, in taxable years beginning
after such date.
<all>