WASHINGTON, D.C. – Today, Rep. Dan Newhouse (WA-04) introduced the Parity for Nuclear Energy Investment Act to expand tax incentives for investments in U.S. nuclear energy development.
“After protecting tax credits for nuclear energy in the Working Families Tax Cuts, it is time to expand investment opportunities for new projects in places like the Tri-Cities,” said Rep. Newhouse. “The Administration is expediting efforts to produce more American nuclear energy, and Richland will be home to some of the first small modular reactors which will help achieve that goal. These projects will create new high-quality jobs, increase economic development, and make Central Washington a leader in the future of U.S. nuclear energy production.”
This legislation is cosponsored by Reps. Chuck Fleischmann (TN-03) and Claudia Tenney (NY-24), and is supported by Energy Northwest, the Nuclear Energy Institute, Elementl Power, Constellation Energy, Holtec International, and X-Energy.
Rep. Fleischmann said, “President Trump has made unleashing American energy dominance one of the top priorities of his Administration. The historic One Big Beautiful Bill ensures that nuclear communities in Tennessee and nationwide receive the tax credits they need to continue investing in new nuclear technologies that are essential to expanding nuclear power, which is critical to meeting our future energy needs and securing our energy independence. I am proud to lead this bill with my good friend, Rep. Newhouse, to ensure that we continue strengthening and supporting America’s nuclear communities.”
Bob Schuetz, CEO, Energy Northwest, said, “This important bill from Congressman Newhouse reflects the national imperative to lead on advanced nuclear. It ensures the new nuclear energy communities bonus tax credit will benefit the world-class workforce and residents of the Tri-Cities, bringing down the cost of the new nuclear projects needed for grid reliability in for the Pacific Northwest.”
Maria Korsnick, President and CEO, the Nuclear Energy Institute, said, “We commend Representative Newhouse for his support to close an important gap in the tax incentives for commercial nuclear technologies. Allowing new nuclear projects to claim the nuclear-specific energy community bonus under the section 48E tax credit mirrors what is already available for projects under the section 45Y tax credit. The change being proposed in the legislation will support new nuclear deployment and bring even more high-quality jobs to communities across the country.”
Chris Colbert, Chairman and CEO, Elementl Power, said, “We strongly support the new legislation introduced by Representative Newhouse to address critical gaps in the current energy tax credit framework. By extending the nuclear communities bonus to the investment tax credit, this legislation will help spur the construction of new nuclear plants to meet our country’s growing power demands, unlock new opportunities for investment, job creation, and local economic growth in communities that have long supported America’s energy leadership.”
David Dardis, Executive Vice President and Chief Legal and Policy Officer, Constellation Energy, said, “Constellation applauds Congressman Newhouse’s leadership and commitment to fostering innovation and growth in America’s energy sector. His bill providing parity for the Energy Communities credit to Section 48E will help drive investment in new, reliable clean energy projects at a critical time as we work to meet growing energy demand.”
Pat O’Brien, Director of Government Affairs and Communications, Holtec International, said, “Congressman Newhouse is a leader in nuclear power because he understands the most significant hurdle to a true renaissance in baseload power is the construction cost. This provision doesn’t pay for the power plant but instead enables private capital to become obtainable. Significantly, it enables the new baseload power generation to site where previous plants have operated.”
Background
The Working Families Tax Cuts added a new bonus credit incentive with respect to the Clean Electricity Production Tax Credit under U.S. Code Section 45Y for “advanced nuclear facilities” located in “nuclear energy communities,” which are any metropolitan statistical area (MSA) that has, or any time since 2010 has had, 0.17% direct employment related to the advancement of nuclear power.
This bonus incentive for the 45Y credit increases a facility’s otherwise applicable production tax credit rate by 10 percent but does not apply to the 48E Investment Tax Credit.
This legislation would create parity for advanced nuclear energy investment by making available this 10 percent new bonus incentive with respect to the Clean Electricity Investment Tax Credit under U.S. Code Section 48E. Additionally, it would grant eligibility to new advanced nuclear facilities in non-metropolitan statistical areas, which makes this bonus tax credit consistent with those in existing law for other energy generation sources.
See full bill text here.
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