U.S. Senator Tim Scott (R-S.C.) introduced the Opportunities for Nuclear Energy Investment Act, which is designed to encourage investment into the construction of new nuclear facilities and bring power grid equipment manufacturing back to the US.

“American energy dominance requires more nuclear facilities and a modernized energy grid,” said Sen. Scott. “The Opportunities for Nuclear Energy Investment Act would create jobs, strengthen American manufacturing, and unleash American energy by encouraging private investment in new nuclear facilities. Keeping production at current levels would leave our country dependent on foreign energy sources, but by expanding nuclear energy here at home, America can power our future and pave our own way forward.”

The Working Families Tax Cuts established bonus tax incentives for nuclear energy, but they only applied to the production of nuclear energy and not to investments in new facilities, according to an announcement from Scott’s office.

The Opportunities for Nuclear Energy Investment Act would address this imbalance by expanding the 10% bonus credit for nuclear energy production to include the building of nuclear facilities under Section 48E, also allowing for non-metropolitan areas to qualify.

In addition, the legislation would expand the 45X Advanced Manufacturing Tax Credit to include distribution transformers and larger power transformers manufactured in the U.S. to speed up grid modernization efforts. These transformers are necessary to deliver electricity to homes and businesses.

Under this bill, construction jobs to build a new nuclear facility would count toward the 0.17% employment requirement to qualify for the 10% bonus credit.

South Carolina is home to four nuclear power plants: Catawba Nuclear Station, Oconee Nuclear Station, H.B. Robinson Nuclear Plant and Virgil C. Summer Nuclear Station

“Transformers are critical to meeting our nation’s rising demand for electricity and ensuring a safe, reliable, and resilient electric grid,” said Will Hupman, senior vice president for government affairs, National Electric Manufacturers Association (NEMA). “NEMA thanks Senator Scott for his leadership in including critical support for domestic transformer manufacturing in the Opportunities for Nuclear Energy Investment Act. This legislation ensures American-made transformers qualify for the 45X tax credit, strengthening domestic manufacturing while mitigating persistent supply chain challenges for distribution transformers. This approach will drive continued investment in U.S. production of critical electrical equipment needed to modernize our nation’s infrastructure to meet today’s growing demand.”

“Meeting America’s growing energy needs will require investment across the energy ecosystem and the infrastructure that supports it. Eaton is investing $340 million in Jonesville, South Carolina to create 700 new jobs and help solve one of the grid’s most urgent challenges: manufacturing distribution transformers. Policies supporting energy infrastructure investment and domestic manufacturing can accelerate grid modernization and ensure reliable power for homes, businesses, and critical industries. We appreciate Senator Scott’s leadership in advancing policies to help build a stronger, more resilient energy system,” said Mike Yelton, president, electrical sector, Americas, Eaton.