Notice 2013-68 - Updated guidance for section 45J credit for electricity produced by nuclear power facilities 

October 24:  The IRS today released an advance copy of Notice 2013-68 containing guidance under section 45J relating to the credit for the production of electricity at advanced nuclear power facilities.

Notice 2013-68 [PDF 28 KB] republishes guidance originally provided by the IRS in Notice 2006-40, but with these changes:


  • A “streamlined” application process (i.e., applications are filed with the IRS only and the IRS will obtain necessary certification from the Energy Department)
  • Modified allocation rules for facilities that are directly or indirectly owned by more than one person
  • Additional guidance concerning the time for filing an application with the Nuclear Regulatory Commission

Background

In April 2006, the IRS issued Notice 2006-40 relating to the credit under section 45J for the production of electricity at advanced nuclear power facilities.


The guidance contained in Notice 2006-40 (and repeated in today’s notice):


  • Specifies the method to be used to allocate the national megawatt capacity limitation that limits the allowable credit
  • Prescribes the application process by which taxpayers may request an allocation of the national megawatt capacity limitation
  • Provides guidance on the requirement that the electricity be sold to an unrelated person and on the effect of grants, tax-exempt bonds, subsidized energy financing and other credits



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