The proposed bill amends the Income Tax Act of 1967 by adding a new section that allows taxpayers to claim a credit against their tax liability for electricity produced using small modular reactors at qualified facilities. Specifically, the credit is calculated at $1.00 per kilowatt hour of electricity sold to unrelated persons, applicable for the first ten years of operation of the reactors. The bill sets a cap on the credit for the first 10,000 megawatts produced by a single facility and requires taxpayers to provide documentation to support their claims. If the credit exceeds the taxpayer's 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 effort aims to promote the use of advanced nuclear technology and support the development of clean energy sources in Michigan.

Statutes affected:
House Introduced Bill: 206.1, 206.847