House clears bill extending nuclear production tax credit
The House of Representatives passed on Tuesday passed a bill that would extend the nuclear power tax credit.
The bill, which would cost $16 million over 10 years, could benefit the only two nuclear projects under construction in the United States by removing the requirement that a nuclear plant be placed in service by the end of 2020 to be eligible for the tax credit.
- The tax credit, similar to a renewable energy production tax credit, provides a 1.8 cents/kWh tax credit for nuclear energy.
The bankruptcy of Westinghouse Electric has jeopardized that completion of Georgia Power’s Vogtle nuclear project in Georgia and SCANA’s V.C. Summer project in South Carolina.
Both projects are already far over budget and about two years behind schedule. More time is also consumed as new arrangements are worked out with Westinghouse, which is supplying the equipment and acting as construction contractor for both projects, could push the completion date for both projects past the current 2020 eligibility date for the tax credit.
The extension bill enjoys bipartisan support and was sponsored by Reps. Tom Rice (R-S.C.) and Earl Blumenauer, (D-Ore.) and others.
The bill would also allow government-owned utilities and electric cooperatives to receive the tax credit and give them the right to transfer credits to their partners on a nuclear station.
“Without this legislation, the nuclear power industry may cease to exist as we know it in this country, which is exactly why passing this bill now is more important than ever,” Rice told The Hill.
- The Hill House passes nuclear energy tax bill
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