Council recommends tax incentives for nuclear energy

A council tasked with examining nuclear energy recommended creating a new tax credit to attract more of the sector to Tennessee.

The Tennessee Nuclear Energy Advisory Council report also recommends lawmakers include nuclear energy on the list of industries eligible for the Certified Green Energy Production Facilities tax break to grow the supply chain.

"Including nuclear energy production facilities in this list would acknowledge the role of nuclear power in providing clean, reliable energy, and provide a financial boost to Tennessee’s nuclear industry by granting them the same tax benefits as other renewable energy sectors," the report said.

A new dedicated jobs tax credit would be offered to companies creating jobs and making capital investments. It is needed because nuclear energy projects are not offered a specific tax credit, the report said.

The panel said a "holistic and integrated" approach has not been made to train new workers for the nuclear industry. A three-year pilot program, the Tennessee Nuclear Energy Workforce Center, "would develop an integrated nuclear workforce enterprise in Tennessee addressing the need for inter-agency coordination, resource sharing, and program mapping to bridge gaps in workforce development."

The committee said a new office would streamline the regulatory environment.

"This new entity would be a single point of contact for any company working through regulatory issues with the state, ensuring that the right resources are being applied to address regulatory issues efficiently," the report said.

The 126-page report announced by Gov. Bill Lee on Thursday "will guide our efforts to effectively address growing power demand over the next 25 years," he said.

The 22-member council divided the 19 recommendations into five categories: addressing first-of-a-kind costs, growing a strong supply chain, coordinating and enhancing workforce development, regulatory responsiveness and coalition building.

The state has focused on nuclear energy. State lawmakers committed $60 million in the 2023-24 budget to the Nuclear Energy Fund. Four projects totaling $12.5 million have been awarded in the last nine months, according to fund's database. The largest project is a $6 million grant to Orano USA to construct a uranium enrichment facility in Oak Ridge that will create 300 new jobs, according to the fund's database.

Expanding the nuclear industry will not happen without a coalition. The council recommended extending its functions for three years.

"New nuclear is and should be a national security interest, and energy independence will be a key to maintaining the nation’s role as a global leader," the council said in its report.