LPPC Letter to Treasury on Section 45U Nuclear Tax Credit Guidance
LPPC submitted a letter to Treasury to request clear and flexible IRS guidance on the Section 45U federal tax credit for existing zero-emission nuclear power production facilities. Eleven LPPC members collectively own 5,600 megawatts of nuclear capacity and are actively claiming the credit as direct payments. The letter focuses on four key issues: how "gross receipts" should be calculated across different utility sales models (organized wholesale markets, bilateral wholesale transactions, and bundled retail sales); how to ensure consistent treatment between co-owners of jointly owned nuclear plants; how guidance should be administrable for both taxable and tax-exempt entities; and why any new guidance should apply prospectively, with an optional retroactive election, to protect members who have already filed claims in good faith relying on existing law.
