Section 45U (Zero-Emission Nuclear Power Production Credit): Section 45U is a federal production tax credit for electricity produced at a qualified nuclear power facility and sold to an unrelated person, available for tax years beginning after December 31, 2023 and before January 1, 2033 (high level). It is designed for existing nuclear facilities that meet the statutory definition and includes a credit amount that can be reduced based on gross receipts and increased in certain circumstances. This page explains §45U in plain English and how it connects to transferability under IRC §6418.

In short (60 seconds)

  • What it is: A production-based credit for electricity produced at a qualified nuclear power facility and sold to an unrelated person (high level).
  • Base amount concept: The statute uses a base amount (0.3 cents/kWh) and then applies a reduction amount framework (high level).
  • Reduction mechanism: IRS materials explain the credit amount can be reduced based on the facility’s gross receipts (high level).
  • How it’s claimed: IRS guidance indicates Part II of Form 7213 is used to claim the §45U credit.
  • Monetization: IRS guidance states the credit can be eligible for elective pay or transfer, depending on the taxpayer and elections, subject to rules.

Related pages

  • Eligible Credits — directory of credits eligible for §6418 transferability.
  • How It Works — transferability workflow, cash rule, timing (high level).
  • Registration Filing — pre-filing registration and registration numbers (high level).
  • Risk Compliance — diligence, excessive transfer concept, and risk basics.
  • Glossary — key terms and definitions.

1) What is the Section 45U credit?

In plain terms, §45U is a production credit for electricity produced at a qualified nuclear power facility and sold to an unrelated person. The IRS explains that §45U was created by the Inflation Reduction Act and applies for electricity produced and sold in tax years beginning after 2023, and before 2033 (high level).

What the statute measures (high level)

  • Production: kilowatt-hours of electricity produced by the taxpayer at a qualified nuclear power facility.
  • Sale: electricity sold by the taxpayer to an unrelated person.
  • Credit amount structure: a base amount per kWh, reduced by a “reduction amount” for the year (high level).

2) What is a “qualified nuclear power facility”?

The statute defines a “qualified nuclear power facility” as a nuclear facility owned by the taxpayer that uses nuclear energy to produce electricity, that is not an “advanced nuclear power facility” as defined for section 45J, and that was placed in service before the date of enactment of section 45U (high level). This definition is important because §45U is aimed at existing facilities rather than new construction.

Plain-English checklist (definition highlights)

  • Owned by the taxpayer and uses nuclear energy to produce electricity.
  • Not an “advanced nuclear power facility” under the section 45J definition (important exclusion).
  • Placed in service before the enactment date referenced in §45U (existing-facility framing).

Always confirm facility status using the statutory text and IRS instructions for the relevant tax year.

3) Credit amount concept: base amount and reduction amount (high level)

The statute describes the credit as the amount by which a base computation (using 0.3 cents per kWh multiplied by qualifying electricity) exceeds a reduction amount for the taxable year (high level). The statute also explains that the reduction amount is linked to gross receipts concepts. IRS materials similarly explain the credit can be reduced based on gross receipts and that inflation adjustments apply after 2024.

Gross receipts note (why it matters)

The statutory framework can treat certain receipts as part of “gross receipts,” including amounts received from a “zero-emission credit program” as defined in the statute (high level). This is one reason why documentation and reporting can be a key diligence item. If you are a buyer, see Risk Compliance.

Time-sensitive note

Credit amounts can be time-sensitive because of inflation adjustments, year-specific factors, and statutory changes. Use the IRS overview page and the latest IRS instructions for Form 7213 to confirm current-year details.

4) How to claim §45U (Form 7213)

IRS instructions explain that Part II of Form 7213 is used to claim the zero-emission nuclear power production credit under §45U. The instructions also include additional reporting items and special notes (for example, the need to attach additional forms in certain cases).

Pre-filing registration note (payment or transfer elections)

IRS instructions for Form 7213 state that the IRS has established a pre-filing registration process that must be completed prior to electing payment or transfer of the zero-emission nuclear power production credit. For the general workflow, see Registration Filing.

5) §45U and transferability under §6418 (high level)

IRS transferability guidance includes §45U among the credits eligible for transfer under §6418 (subject to the transfer rules). In general, §6418 transfers involve an election and a cash-consideration concept, and require pre-filing registration as described in the final rules. This site covers the overall workflow in How It Works.

Transferability checklist for §45U (high level)

  • Confirm eligibility: Verify the facility meets the statutory “qualified nuclear power facility” definition and the relevant tax-year rules.
  • Pre-filing registration: Complete required registration steps before electing payment or transfer (as applicable).
  • Documentation: Keep production and sales support (kWh produced, sold to unrelated person) plus gross receipts support.
  • Risk awareness: Buyer risk can exist if credits are later challenged; see Risk Compliance.

Read next: How It Works and Registration Filing.

6) Additional compliance notes (high level)

IRS instructions for Form 7213 include time-sensitive compliance items and limitations (for example, restrictions tied to certain foreign entity concepts and documentation requirements in some circumstances). Because these requirements can change, always consult the latest IRS instructions for the year you are analyzing.

Prevailing wage/apprenticeship (PWA) pointer (high level)

IRS instructions for Form 7213 indicate that additional forms may be required to claim an increased credit amount when prevailing wage and apprenticeship conditions apply. Verify the specific tax-year requirements in the official instructions.

FAQs (Section 45U)

1) What does §45U generally measure?

Electricity produced at a qualified nuclear power facility and sold to an unrelated person, using a base amount and reduction amount framework (high level).

2) Is §45U intended for new nuclear construction?

The statutory definition of “qualified nuclear power facility” is framed around existing facilities (placed in service before the enactment date referenced in the statute).

3) How do I claim §45U?

IRS guidance indicates Part II of Form 7213 is used to claim the §45U credit.

4) Can §45U be transferred under §6418?

IRS transferability guidance includes §45U among eligible credits that may be transferred under §6418, subject to the transfer rules.

5) Is this page tax or legal advice?

No. This site provides general informational and educational content only. See Disclaimer.

Official sources (clickable)

This page is educational. For official definitions, year-specific amounts, and reporting rules, consult the sources below.

Last updated: February 2026

Note: Educational content only — not tax or legal advice. See Disclaimer.