Biden is considering using nuclear energy to expand tax credits for solar and wind energy

Under the Inflation Control Act, a tax credit that previously applied to a limited set of clean energy technologies may soon be expanded to include nuclear power.

On Wednesday, the Treasury Department and the Internal Revenue Service released proposed new tax policy guidance that would include a range of new electricity generation programs deemed carbon neutral.

“These new clean electricity credits are one of the most important reforms to the law, providing for the first time incentives for any clean energy facility that achieves net-zero greenhouse gas emissions,” the Treasury Department said in a statement. “These credits enable the development of new zero-GHG technologies over time, while providing long-term transparency and certainty for investors and clean energy project developers.”

Previously, the so-calledManufacturing tax credit” would apply to wind, closed loop biomass, open loop biomass, geothermal energy, solar energy, small power irrigation, municipal solid waste, qualified hydropower production and marine and hydrokinetic renewable energy.

The updated guidance on the “Clean Electricity Production Credit” and the “Clean Electricity Investment Credit” would also apply to nuclear fission and fusion, geothermal energy, and certain types of waste energy recovery properties.