Special Tax Rate for Nuclear Decommissioning Reserve Funds


Energy - Nuclear

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

House Committee on Ways and Means, Senate Finance Committee

$40 FY 23 Budget Score (in mil.)
$200 FY 23-32 Budget Score (in mil.)

Owners of nuclear power plants can claim a tax deduction for any payments made to a Nuclear Decommissioning Reserve Fund in a tax year. The fund is used to satisfy any liabilities associated with decommissioning a nuclear power plant and the costs of administering the fund, but can also be used for investing. The payments or transfers are ratably deductible over the estimated useful life of the power plant. A taxpayer can establish a Nuclear Decommissioning Reserve Fund for each power plant and can transfer into the fund an amount equal to or less than the total amount for decommissioning the plant, lowering their overall tax liability.

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