26 U.S.C. § 45U — Zero-emission nuclear power production

Page 305 TITLE 26—INTERNAL REVENUE CODE § 45U any dollar limitation contained in such section). Such term shall not include any amount taken into account for purposes of determining any other credit allowed under this subpart. (h) Election to have credit not apply (1) In general A taxpayer may elect to have this section not apply for any taxable year. (2) Other rules Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection. (i) Termination This section shall not apply to wages paid in taxable years beginning after December 31, 2025. (Added Pub. L. 115–97, title I, § 13403(a)(1), Dec. 22, 2017, 131 Stat. 2135; amended Pub. L. 116–94, div. Q, title I, § 142(a), Dec. 20, 2019, 133 Stat. 3234; Pub. L. 116–260, div. EE, title I, § 119(a), Dec. 27, 2020, 134 Stat. 3051.) Editorial Notes REFERENCES IN TEXT The Family and Medical Leave Act of 1993 and that Act, referred to in subsecs. (c)(2)(B) and (e)(1), (3), is Pub. L. 103–3, Feb. 5, 1993, 107 Stat. 6. Title I of the Act is classified generally to subchapter I (§ 2611 et seq.) of chapter 28 of Title 29, Labor. Section 102 of the Act is classified to section 2612 of Title 29. For complete clas- sification of this Act to the Code, see Short Title note set out under section 2601 of Title 29 and Tables. Section 3(e) of the Fair Labor Standards Act of 1938, referred to in subsec. (d), is classified to section 203(e) of Title 29, Labor. AMENDMENTS 2020—Subsec. (i). Pub. L. 116–260 substituted ‘‘Decem- ber 31, 2025’’ for ‘‘December 31, 2020’’. 2019—Subsec. (i). Pub. L. 116–94 substituted ‘‘Decem- ber 31, 2020’’ for ‘‘December 31, 2019’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. EE, title I, § 119(b), Dec. 27, 2020, 134 Stat. 3051, provided that: ‘‘The amendment made by this section [amending this section] shall apply to wages paid in taxable years beginning after December 31, 2020.’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. Q, title I, § 142(b), Dec. 20, 2019, 133 Stat. 3234, provided that: ‘‘The amendment made by this section [amending this section] shall apply to wages paid in taxable years beginning after December 31, 2019.’’ EFFECTIVE DATE Section applicable to wages paid in taxable years be- ginning after Dec. 31, 2017, see section 13403(e) of Pub. L. 115–97, set out as an Effective Date of 2017 Amend- ment note under section 38 of this title. § 45T. Auto-enrollment option for retirement sav- ings options provided by small employers (a) In general For purposes of section 38, in the case of an el- igible employer, the retirement auto-enrollment credit determined under this section for any taxable year is an amount equal to— (1) $500 for any taxable year occurring during the credit period, and (2) zero for any other taxable year. (b) Credit period For purposes of subsection (a)— (1) In general The credit period with respect to any eligi- ble employer is the 3-taxable-year period be- ginning with the first taxable year for which the employer includes an eligible automatic contribution arrangement (as defined in sec- tion 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) sponsored by the employer. (2) Maintenance of arrangement No taxable year with respect to an employer shall be treated as occurring within the credit period unless the arrangement described in paragraph (1) is included in the plan for such year. (c) Eligible employer For purposes of this section, the term ‘‘eligi- ble employer’’ has the meaning given such term in section 408(p)(2)(C)(i). (Added Pub. L. 116–94, div. O, title I, § 105(a), Dec. 20, 2019, 133 Stat. 3148.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to taxable years beginning after Dec. 31, 2019, see section 105(d) of Pub. L. 116–94, set out as an Effective Date of 2019 Amendment note under sec- tion 38 of this title. § 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) 0.3 cents, multiplied by (B) the kilowatt hours of electricity— (i) produced by the taxpayer at a quali- fied 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 elec- tricity, (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 ‘‘re- duction amount’’ means, with respect to any Page 306 TITLE 26—INTERNAL REVENUE CODE § 45U qualified nuclear power facility for any tax- able year, the amount equal to the lesser of— (i) the amount determined under sub- section (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 pro- duced by such facility (including any electricity services or products provided in conjunction with the electricity pro- duced by such facility) and sold to an un- related 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 deter- mined under subparagraph (A)(ii)(I) shall include any amount received by the tax- payer during the taxable year with respect to the qualified nuclear power facility from a zero-emission credit program. For purposes of determining the amount re- ceived during such taxable year, the tax- payer shall take into account any reduc- tions 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 at- tributes 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-emis- sion credit program shall be excluded from the amount determined under subpara- graph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this sub- paragraph) is used to reduce payments from such zero-emission credit program. (3) Electricity For purposes of this section, the term ‘‘elec- tricity’’ means the energy produced by a qualified nuclear power facility from the con- version 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 ad- justment factor (as determined under section 45(e)(2), as applied by substituting ‘‘calendar year 2023’’ for ‘‘calendar year 1992’’ in subpara- graph (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 mul- tiple 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. (d) Wage requirements (1) Increased credit amount for qualified nu- clear power facilities In the case of any qualified nuclear power fa- cility which satisfies the requirements of paragraph (2)(A), the amount of the credit de- termined 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 sub- paragraph with respect to any qualified nu- clear power facility are that the taxpayer shall ensure that any laborers and mechan- ics employed by the taxpayer or any con- tractor 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 Sec- retary of Labor, in accordance with sub- chapter 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.) 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. AMENDMENTS 2022—Subsec. (c)(2). Pub. L. 117–169, § 13204(b)(2), sub- stituted ‘‘(5), and (13)’’ for ‘‘and (5)’’. Page 307 TITLE 26—INTERNAL REVENUE CODE § 45V Statutory Notes and Related Subsidiaries 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.’’ § 45V. Credit for production of clean hydrogen (a) Amount of credit For purposes of section 38, the clean hydrogen production credit for any taxable year is an amount equal to the product of— (1) the kilograms of qualified clean hydrogen produced by the taxpayer during such taxable year at a qualified clean hydrogen production facility during the 10-year period beginning on the date such facility was originally placed in service, multiplied by (2) the applicable amount (as determined under subsection (b)) with respect to such hy- drogen. (b) Applicable amount (1) In general For purposes of subsection (a)(2), the appli- cable amount shall be an amount equal to the applicable percentage of $0.60. If any amount as determined 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) Applicable percentage For purposes of paragraph (1), the applicable percentage shall be determined as follows: (A) In the case of any qualified clean hy- drogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) not greater than 4 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 2.5 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 20 per- cent. (B) In the case of any qualified clean hy- drogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) less than 2.5 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 1.5 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 25 per- cent. (C) In the case of any qualified clean hy- drogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) less than 1.5 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 33.4 per- cent. (D) In the case of any qualified clean hy- drogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applica- ble percentage shall be 100 percent. (3) Inflation adjustment The $0.60 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by sub- stituting ‘‘2022’’ for ‘‘1992’’ in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sen- tence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest mul- tiple of 0.1 cent. (c) Definitions For purposes of this section— (1) Lifecycle greenhouse gas emissions (A) In general Subject to subparagraph (B), the term ‘‘lifecycle greenhouse gas emissions’’ has the same meaning given such term under sub- paragraph (H) of section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in ef- fect on the date of enactment of this section. (B) GREET model The term ‘‘lifecycle greenhouse gas emis- sions’’ shall only include emissions through the point of production (well-to-gate), as de- termined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the ‘‘GREET model’’) developed by Ar- gonne National Laboratory, or a successor model (as determined by the Secretary). (2) Qualified clean hydrogen (A) In general The term ‘‘qualified clean hydrogen’’ means hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilo- grams of CO2e per kilogram of hydrogen. (B) Additional requirements Such term shall not include any hydrogen unless— (i) such hydrogen is produced— (I) in the United States (as defined in section 638(1)) or a possession of the United States (as defined in section 638(2)), (II) in the ordinary course of a trade or business of the taxpayer, and (III) for sale or use, and (ii) the production and sale or use of such hydrogen is verified by an unrelated party. (C) Provisional emissions rate In the case of any hydrogen for which a lifecycle greenhouse gas emissions rate has not been determined for purposes of this sec- tion, a taxpayer producing such hydrogen may file a petition with the Secretary for