(Washington, D.C. - July 28, 2022) NIA Executive Director Judi Greenwald provided the following statement on the introduction of the Inflation Reduction Act of 2022:
“The Inflation Reduction Act of 2022 recognizes that we need a full suite of clean energy technologies, including advanced reactors, to meet our climate and energy goals. The bill provides important investments and incentives for the commercialization of advanced nuclear energy. The Nuclear Innovation Alliance (NIA) commends Senators Manchin and Schumer and the many people who have been working day and night on this historic legislation, and we look forward to working with Congress and the Administration as it is finalized in the coming weeks."
“One key condition for advanced reactor success is the availability of high-assay, low-enriched uranium (HALEU). If enacted, the Inflation Reduction Act would enable the United States to take the initial steps to make HALEU available for demonstration projects and other commercial advanced reactors through public and private partnerships and actions. The U.S. would invest a total of $600 million to help ensure that HALEU is available for the first advanced reactors and support development of a commercial domestic HALEU market. The U.S. would also invest $100 million to help design and license the new systems and containers needed to transport HALEU fuels. These actions would be an important signal for advanced reactor developers and potential fuel cycle commercial partners to support initial deployment of both fuels and technologies.
“In addition, this bill would incentivize the deployment of advanced reactors and enable developers to realize cost reductions across multiple reactor projects. The Inflation Reduction Act includes two technology-neutral clean electricity tax credits for which advanced nuclear energy is eligible as a zero-emitting energy source: a production tax credit (PTC) and an investment tax credit (ITC). A project developer could elect either tax credit. According to our analysis, these tax provisions would be enormously helpful in driving investment and innovation in advanced nuclear energy, making advanced nuclear energy projects competitive with other energy technologies. We are particularly pleased that these new tax incentives would be comparable to those available to other clean electricity technologies. The inclusion of “transferability” provisions, and the option of using either a PTC or an ITC, would make the credits usable for a broad range of taxpayers.
“Introduction is just the first step in securing the positive provisions of the Inflation Reduction Act in law. We are hopeful Congress will recognize the urgent need for U.S. leadership on climate and energy policy and advance this legislation and its strong energy and climate provisions to the President’s desk for signature as soon as possible.”
The Nuclear Innovation Alliance (NIA) is a non-profit think-and-do-tank working to enable nuclear power as a global solution to mitigate climate change. Through policy analysis, research, and education, we are catalyzing the next era of nuclear energy. Our organization is funded primarily through charitable grants and philanthropic donations from climate-concerned individuals and organizations.