Federal tax credit would cover 10% of transformer production costs

Federal tax rules would calculate the production credit for a covered transformer as 10% of the taxpayer's production costs. Covered equipment would include distribution transformers defined elsewhere in federal law and large power transformers that move electricity between circuits in the bulk power system. The transformer provisions would apply to covered equipment produced and sold after the date 90 days after enactment.

Federal tax rules would treat certain nuclear-linked areas as energy communities for advanced nuclear facilities and keep qualifying sites in that category for 10 years. The employment test would cover metropolitan and nonmetropolitan areas where at least 0.17% of employment is directly or indirectly tied to advancing nuclear power. Covered work includes nuclear facilities, fuel-cycle work, and related planning and construction. The 10-year rule would apply only if the construction site meets any federal energy-community test on the date construction begins. The employment test would look at any time after December 31, 2009. The amendments would take effect as if included in the specified sections of Public Law 119–21.