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Internal Revenue Code · 26 U.S.C.

§ 45U. Zero-emission nuclear power production credit

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 45U

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
August 16, 2022 by Pub. L. 117–169
Last amended
July 4, 2025 by Pub. L. 119–21
Amendments
1 dated changes in the source credit
Length
5 subsections · 1,004 words · about 4 min to read
Defines
4 terms
(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) 0.3 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 an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and
(C) which is placed in service before the date of the enactment of this 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 16 percent of the excess of—
(I) subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the 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

Subject to clause (iii), 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. For purposes of determining the amount received during such taxable year, the taxpayer shall take into account any reductions required under such program.

(ii) Zero-emission credit program

For purposes of this subparagraph, the term “zero-emission credit program” means any payments with respect to a qualified nuclear power facility as a result of any Federal, State or local government program 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.

(iii) Exclusion

For purposes of clause (i), any amount received by the taxpayer from a zero-emission credit program shall be excluded from the amount determined under subparagraph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this subparagraph) is used to reduce payments from such zero-emission credit program.

(3) Electricity

For purposes of this section, the term “electricity” means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power.

(c) Other rules
(1) Inflation adjustment

The 0.3 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 2023” for “calendar year 1992” in subparagraph (B) thereof) for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 2.5 cent amount as increased under this paragraph 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), (5), and (13) of section 45(e) shall apply for purposes of this section.

(3) Restrictions relating to prohibited foreign entities
(A) In general

No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).

(B) Other prohibited foreign entities

No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).

(d) Wage requirements
(1) Increased credit amount for qualified nuclear power facilities

In the case of any qualified nuclear power facility which satisfies the requirements of paragraph (2)(A), the amount of the credit determined under subsection (a) shall be equal to such amount (as determined without regard to this sentence) multiplied by 5.

(2) Prevailing wage requirements
(A) In general

The requirements described in this subparagraph with respect to any qualified nuclear power facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the alteration or repair of such facility shall be paid wages at rates not less than the prevailing rates for alteration or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(B) Correction and penalty related to failure to satisfy wage requirements

Rules similar to the rules of section 45(b)(7)(B) shall apply.

(3) Regulations and guidance

The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.

(e) Termination

This section shall not apply to taxable years beginning after December 31, 2032.

(Added and amended Pub. L. 117–169, title I, §§ 13105(a), 13204(b)(2), Aug. 16, 2022, 136 Stat. 1929, 1940; Pub. L. 119–21, title VII, § 70510(a), July 4, 2025, 139 Stat. 252.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

Regulations under this section

Treasury regulations (26 CFR) issued under § 45U

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 4 other sections

Cited by 4 Code sections

Cited in 8 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 119–21Parts changed in 2025: (c)(3)
  2. Added by Pub. L. 117–169Parts changed in 2022: (c)(2)

Where it sits in the Code

  1. Subtitle A Income Taxes
  2. Chapter 1 NORMAL TAXES AND SURTAXES
  3. Subchapter A Determination of Tax Liability
  4. Part IV CREDITS AGAINST TAX
  5. Subpart D Business Related Credits

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

References in Text

The date of the enactment of this section, referred to in subsec. (b)(1)(C), is the date of enactment of Pub. L. 117–169, which was approved Aug. 16, 2022.

The date of enactment of this paragraph, referred to in subsec. (c)(3), is the date of enactment of Pub. L. 119–21, which was approved July 4, 2025.

Amendments

2025—Subsec. (c)(3). Pub. L. 119–21 added par. (3).

2022—Subsec. (c)(2). Pub. L. 117–169, § 13204(b)(2), substituted “(5), and (13)” for “and (5)”.

Effective Date of 2025 Amendment

Pub. L. 119–21, title VII, § 70510(b), July 4, 2025, 139 Stat. 252, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after the date of enactment of this Act [July 4, 2025].”

Effective Date of 2022 Amendment

Amendment by section 13204(b)(2) of Pub. L. 117–169 applicable to electricity produced after Dec. 31, 2022, see section 13204(b)(3) of Pub. L. 117–169, set out as a note under section 45 of this title.

Effective Date

Pub. L. 117–169, title I, § 13105(c), Aug. 16, 2022, 136 Stat. 1931, provided that: “This section [enacting this section and amending section 38 of this title] shall apply to electricity produced and sold after December 31, 2023, in taxable years beginning after such date.”