IRC §45U · production credit

Section 45U: selling the Zero-Emission Nuclear Power Production Credit

A production credit for existing nuclear plants, reduced as power prices rise. Sellers are utilities and plant owners; the credits trade in large blocks.

Verified 11 Oct 2026 · IRS Form 7213, Nuclear Power Production Credit

Who earns it and how it is measured

The credit is earned on electricity produced at an existing qualified nuclear power facility and sold to an unrelated person^[1]. The starting amount is 0.3¢ per kWh, five times that where the prevailing wage requirements are met, less a reduction amount that grows with the plant’s gross receipts from the electricity^[1]. In years of high power prices the credit can shrink to nothing.

The credit does not apply to tax years beginning after 31 December 2032^[1].

Foreign-entity rules

For tax years beginning after 4 July 2025, no credit is allowed if the taxpayer is a specified foreign entity, and a further bar on foreign-influenced entities starts two years later^[1]. The credit also cannot be transferred to a specified foreign entity^[2].

Selling it

1. Register each facility for the transfer election and renew each year^[3], at least 120 days before the return’s due date^[4].
2. Claim on Form 7213^[5] and report the transfer on Form 3800, Part III, column (f)^[6].
3. Attach the transfer election statement to an original, timely return^[7].

What buyers ask for on a §45U deal: production and sales records; the gross-receipts calculation behind the reduction amount; and prevailing wage records. Because the final credit depends on a full year’s receipts, purchase agreements usually address true-ups.

Frequently asked questions

Which form claims §45U?

Form 7213, Nuclear Power Production Credit^[5].

When did §45U credits start?

The credit was added by the Inflation Reduction Act of 2022 and applies to electricity produced and sold after 2023 in tax years beginning after that date^[1].

Market price

No credit-specific price is published for §45U; across the market, most transferable credits sold for 80 to 96 cents per dollar in 2026; large, insured, investment-grade deals near the top and small uninsured deals near the bottom.^{[Cenet Capital]}

Market estimate, not an offer. Prices move with buyer demand, deal size, seller credit quality, insurance and foreign-entity exposure. Run your own figures in the Credit Value Estimator, or compare every published report on the prices page.

Deadlines for §45U

1. 4 Jul 2025
   No transfers of these credits to a specified foreign entity

   For tax years beginning after 4 July 2025, credits under §§45Q, 45U, 45X, 45Y, 45Z and 48E may not be transferred to a specified foreign entity.
2. 31 Dec 2032
   §45U ends for tax years beginning after 2032

   The nuclear production credit does not apply to tax years beginning after 31 December 2032.