WASHINGTON, D.C. – Yesterday, Congressman Darin LaHood introduced H.R. 5732, the Nuclear Powers America Act of 2018 with strong bipartisan support. Given the economic challenges facing nuclear energy, the bill would provide an investment tax credit (ITC) for continued capital investment in existing nuclear plants.
“Our nuclear plants are currently facing unprecedented challenges, with five plants operating at a loss in Illinois alone,” said Rep. LaHood. “Nuclear energy provides twenty percent of our nation’s electricity, and a majority of our emissions-free generation, which is why it is so important that we strengthen these plants through capital investment. My bill would promote just that, by creating a tax credit for continued investment in nuclear plants and ensure that our nation’s electrical system stays strong. As a strong proponent of an all of the above energy approach, I understand the importance of a level playing field and a diversified energy portfolio for both national security and energy independence.”
The Nuclear Powers America Act of 2018 would create a 30% tax credit for refueling costs and qualified nuclear power plant capital expenditures for each taxable year through 2021. Thereafter, the credit rate would be reduced until it reached 10% in 2024. This phaseout of the 30% rate is modeled after the phaseout for the solar ITC.
Illinois is home to six nuclear plants, supporting over 5,900 jobs and accounting for 50.6% of Illinois’ electricity generation. This includes the nuclear power plant in Clinton which supports approximately 700 jobs in DeWitt County. All but one of the Illinois plants are currently operating at a loss according to Bloomberg New Energy Finance.
Nuclear power accounts for 20% of the nation’s electrical supply, produces more than 60% of the emissions-free generation in America, and support 475,000 jobs. Despite this, challenges in the marketplace have created challenges to our nuclear fleet, leading to five plants retiring prematurely and nine more announced as retiring before the end of their licensed lives.
