Bill > S235

Introduced Session

This bill establishes two tax credits and a financial grant related to the construction and operation of advanced nuclear energy facilities. The bill allows a taxpayer that is a manufacturer of equipment and components for advanced nuclear facilities licensed by the United States Nuclear Regulatory Commission to apply for a corporation business tax credit equal to 15 percent of the amount paid during the privilege period for: (1) new manufacturing equipment installed at a new or existing manufacturing facility located within the State; and (2) the acquisition, construction, reconstruction, installation, or erection of improvements or additions that result in the renovation, modernization, or expansion of a manufacturing facility located within the State. The bill also creates the "New Jersey Advanced Nuclear Energy Development Program" within the New Jersey Economic Development Authority to encourage the construction of advanced nuclear energy facilities in the State through the provision of incentive tax credits to a developer for the construction and production of energy at the facility. The program would be administered by the authority in consultation with the Board of Public Utilities. In order to qualify for the incentive tax credit established pursuant to this bill, a developer would be required to demonstrate that: · there is a need for project financing; · the project is located at a current or decommissioned commercial nuclear generating facility in the State with a license that is or was previously issued by the United States Nuclear Regulatory Commission;· the developer intends to initiate the process for acquisition of a license for the construction of an advanced nuclear reactor with the United States Nuclear Regulatory Commission by the end of calendar year 2023 and be issued an operator license for the facility by 2030;· the project will comply with various environmental, affirmative action, and wage standards; and· the developer will commit at least 20 percent of the total project cost.In addition to assisting with financing construction of an advanced nuclear energy facility, an incentive tax credit provided under the program would provide $1 million for each megawatt of energy produced by the facility upon completion. Finally, this bill establishes a financial grant to facilitate the construction and operation of the first advanced nuclear energy facility in the State. The bill provides that commencing on January 1 next following the bill's enactment, and on January 1 of each year thereafter, the Board of Public Utilities (BPU) will be required to provide a financial grant (known as an advanced nuclear energy grant) to the first advanced nuclear energy facility operating in the State. The grant is to equal $50 per megawatt-hour of electricity generated by the advanced nuclear energy facility in the preceding calendar year. The first advanced nuclear energy facility in the State would be entitled to receive such a grant in each of the first 25 years of the facility's operations.

Committee Categories

Bob Smith (D)*,  Patrick Diegnan (D), 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/09/2024)

Official Document