Modifications of zero-emission nuclear power production credit

(a) Phase-out Section 45U(e) is amended to read as follows: (e) Credit phase-out (1) In general For any taxable year beginning after December 31, 2028, the amount of the zero-emission nuclear power production credit under subsection (a) for such taxable year shall be equal to the product of— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase-out percentage under paragraph (2). (2) Phase-out percentage The phase-out percentage under this paragraph is equal to— (A) for any taxable year beginning in calendar year 2029, 80 percent, (B) for any taxable year beginning in calendar year 2030, 60 percent, (C) for any taxable year beginning in calendar year 2031, 40 percent, and (D) for any taxable year beginning after December 31, 2031, 0 percent.. (b) Restrictions relating to prohibited foreign entities Section 45U(c) is amended by adding at the end the following new paragraph: (3) Restrictions relating to prohibited foreign entities (A) In general No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). (B) Other prohibited foreign entities No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).. (c) Repeal of transferability Section 6418(f)(1)(A), as amended by section 112008, 112009, 112010, and 112011, is amended by striking clause (iv). (d) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Repeal of transferability The amendment made by subsection (c) shall apply to electricity produced and sold after December 31, 2027.

(a) Restrictions relating to prohibited foreign entities Section 45U(c) is amended by adding at the end the following new paragraph: (3) Restrictions relating to prohibited foreign entities (A) In general No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). (B) Other prohibited foreign entities No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).. (b) Termination of credit Section 45U(e) is amended by striking December 31, 2032 and inserting December 31, 2031. (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.