Congressman Pat Harrigan Introduces the Nuclear Rate Stabilization Act to Lower Energy Bills and Expand Nuclear Energy
Contact: Lexi Kranich (814) 380-4408
WASHINGTON, D.C.—Today, Congressman Pat Harrigan (NC-10), alongside co-lead Congressman Jimmy Panetta (D-CA-19), introduced the Nuclear Rate Stabilization Act, bipartisan legislation to fix broken tax credit rules that have been holding back nuclear energy construction and preventing savings from reaching consumers at the meter.
"We have the most powerful energy source on earth, zero emissions, reliable baseload power that can run for decades, and we are letting outdated accounting rules strangle it before it gets off the ground," said Congressman Harrigan. "The Nuclear Rate Stabilization Act makes sure the tax credits Congress already passed actually reach the people they were meant to help, lowers costs for consumers, and gets more reactors built. Nuclear is the future of American energy dominance and it is past time our tax code reflected that."
“Safe and secure nuclear energy has immense potential to slash emissions and lower energy costs for working families, but inefficient tax rules are blocking nuclear construction from reaching its full potential,” said Congressman Panetta. “Our bipartisan bill would update the tax code to ensure that safe and secure nuclear projects can properly utilize clean energy investment tax credits to build reactors in a timely manner, cutting greenhouse gas emissions for our environment and saving consumers money on their electricity bills. I’m always glad to work across the aisle when it comes to reducing energy costs and strengthening America’s energy independence.”
“NEI applauds Representatives Harrigan and Panetta for introducing the Nuclear Rate Stabilization Act (NRSA). The bill strengthens existing energy tax credits to support the next generation of reliable, clean nuclear energy. By making nuclear investment tax credits more effective and improving affordability for customers, NRSA will help utilities move forward with new nuclear projects to meet growing energy demand. We urge Congress to act quickly to enact this legislation,” said Maria Korsnick, president and CEO of the Nuclear Energy Institute.
“The tax policy called for in the bipartisan Nuclear Rate Stabilization Act will help encourage further investment in the construction of new nuclear energy projects, accelerating the benefits these projects can deliver to our nation. Elementl Power looks forward to working with Congress and our partners to advance this legislation,” said Chris Colbert, Chairman and CEO, Elementl Power.
Currently, utilities constructing nuclear reactors are eligible for a clean energy investment tax credit of between 30 and 50 percent of construction costs. However, ITC normalization rules require that credit to be stretched over the 40-year life of the reactor, diluting its effectiveness and preventing near-term rate relief from reaching consumers. Additionally, Qualified Project Expenditure credits for nuclear projects cannot be transferred to third parties, leaving utilities sitting on unusable credits and cutting off access to capital that new reactor projects desperately need.
The Nuclear Rate Stabilization Act gives nuclear energy projects the same opt-out option from ITC normalization rules currently available to battery storage projects and allows QPE credits to be transferred to third parties, unlocking critical capital and making new reactor construction more financially viable. Congressman Harrigan is urging his colleagues to support the legislation and take a meaningful step toward lower energy bills, energy independence, and a stronger American nuclear industrial base.