Sen. Tim Scott introduces legislation to encourage investment in new nuclear facilities, bring manufacturing back to U.S.

WASHINGTON - U.S. Senator Tim Scott (R-S.C.) introduced the Opportunities for Nuclear Energy Investment Act, which is designed to encourage investment into the construction of new nuclear facilities and bring grid equipment manufacturing back to the United States.

"American energy dominance requires more nuclear facilities and a modernized energy grid," said Sen. Scott. "The Opportunities for Nuclear Energy Investment Act would create jobs, strengthen American manufacturing, and unleash American energy by encouraging private investment in new nuclear facilities. Keeping production at current levels would leave our country dependent on foreign energy sources, but by expanding nuclear energy here at home, America can power our future and pave our own way forward."

The Working Families Tax Cuts established bonus tax incentives for nuclear energy, but they only applied to the production of nuclear energy and not to investments in new facilities. The Opportunities for Nuclear Energy Investment Act would address this imbalance by expanding the 10% bonus credit for nuclear energy production to include the building of nuclear facilities under Section 48E (48E), also allowing for non-metropolitan areas to qualify.

In addition, the legislation would expand the 45X Advanced Manufacturing Tax Credit to include distribution transformers and larger power transformers manufactured in the U.S. to speed up grid modernization efforts. These transformers are necessary to deliver electricity to homes and businesses. Currently, both transformers are backlogged by approximately two years.

Background:

• "Nuclear communities" represent areas where unemployment is above the national average and 0.17% of employment comes from legacy energy sources.
  • Under this bill, construction jobs to build a new nuclear facility would count toward the 0.17% employment requirement to qualify for the 10% bonus credit.
• South Carolina is a top U.S. nuclear power producer and serves as home to four major facilities:
  • Catawba Nuclear Station
  • Oconee Nuclear Station
  • H.B. Robinson Nuclear Plant
  • Virgil C. Summer Nuclear Station
• President Trump has called for 10 new nuclear facilities to be built within the decade and, to reach that goal, the nuclear community must be expanded.

Endorsements:

"The Palmetto Nuclear Coalition applauds Senator Scott's leadership in advancing legislation to support investment in the next generation of nuclear energy," said Ethel Bunch, founder, Palmetto Nuclear Coalition. "South Carolina has the workforce, infrastructure, and experience to lead this effort. Expanding energy community eligibility would help build on those strengths and attract new nuclear investment and jobs to our state. We appreciate the opportunity to work with Senator Scott's office on this legislation and look forward to supporting its passage."

"Transformers are critical to meeting our nation's rising demand for electricity and ensuring a safe, reliable, and resilient electric grid," said Will Hupman, senior vice president for government affairs, National Electric Manufacturers Association (NEMA). "NEMA thanks Senator Scott for his leadership in including critical support for domestic transformer manufacturing in the Opportunities for Nuclear Energy Investment Act. This legislation ensures American-made transformers qualify for the 45X tax credit, strengthening domestic manufacturing while mitigating persistent supply chain challenges for distribution transformers. This approach will drive continued investment in U.S. production of critical electrical equipment needed to modernize our nation's infrastructure to meet today's growing demand."

Chris Colbert, chairman and CEO, Elementl Power, said, "We strongly support Senator Scott's legislation to address critical gaps in the current energy tax credit framework. By extending the nuclear communities bonus to the investment tax credit, this bill builds on Representative Newhouse's legislation from last year and will help accelerate the deployment of new nuclear plants to meet our country's growing power demands, unlocking investment, job creation, and local economic growth in communities that have long supported America's energy leadership. We look forward to working with Senator Scott and his Finance Committee colleagues to advance these necessary changes to section 48E."

Kodwo Ghartey-Tagoe, executive vice president and chief executive officer, Duke Energy Carolinas, said, "Nuclear energy has helped power the Carolinas for generations. As more families and businesses choose to call the Carolinas home, always-on nuclear energy remains an important option for meeting our region's growing energy needs while helping keep costs as low as possible for customers. We applaud Senator Scott's leadership on policies that support potential new nuclear projects and a strong nuclear energy future."

"Meeting America's growing energy needs will require investment across the energy ecosystem and the infrastructure that supports it. Eaton is investing $340 million in Jonesville, South Carolina to create 700 new jobs and help solve one of the grid's most urgent challenges: manufacturing distribution transformers. Policies supporting energy infrastructure investment and domestic manufacturing can accelerate grid modernization and ensure reliable power for homes, businesses, and critical industries. We appreciate Senator Scott's leadership in advancing policies to help build a stronger, more resilient energy system," said Mike Yelton, president, electrical sector, Americas, Eaton.

The full text of the bill is available here.

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