The proposed bill amends the Income Tax Act of 1967 by adding a new section, Sec. 678, which establishes a tax credit for taxpayers who produce electricity using small modular reactors at qualified facilities. Specifically, the credit is set at $1.00 per kilowatt hour of electricity produced and sold to unrelated persons, applicable for the first ten years of operation of the reactors. The bill outlines that taxpayers can claim this credit for up to 10,000 megawatts of electricity produced by a single facility and requires documentation to support eligibility and production amounts. If the credit exceeds the taxpayer's tax liability, the excess can be carried forward for up to 15 years.

Additionally, the bill defines key terms such as "advanced nuclear reactors," "qualified facility," and "small modular reactors," establishing criteria for eligibility. The enactment of this bill is contingent upon the passage of several other specified bills in the 103rd Legislature. This legislative move aims to promote the use of advanced nuclear technology and support the development of clean energy sources in Michigan.

Statutes affected:
Substitute (H-2): 206.1, 206.847
House Introduced Bill: 206.1, 206.847