Production tax credits for nuclear in energy bill

Production tax credits for nuclear in energy bill

Washington (Platts)--27Jul2005

A production tax credit for new power reactors of 1.8 cents per kilowatt-hour
will be established under the tax incentives now part of broad energy
legislation. The tax credit, the first for the nuclear power industry, is for
the amount of nuclear-generated electricity produced over eight years. The tax
package also says all decommissioning funds should be placed into qualified
funds with a 20% tax rate, ending the separation of funds into qualified and
non-qualified funds--which are taxed at 35%--depending on when a reactor began
operations. Cost of the decommissioning fund change was estimated at
$1.29-billion, according to the tax package. The House is expected to vote on
the conference energy bill, with the tax package, July 28 and the Senate a day
later.

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