SECTION 2. BACKGROUND

.01 Section 45J was enacted by section 1306 of the Energy Policy Act of 2005, Public Law 109–58 (119 Stat. 594). Section 45J permits a taxpayer to claim a credit for electricity that the taxpayer (1) produces at an advanced nuclear power facility during the eight-year period beginning when the facility is placed in service and (2) sells to an unrelated person (qualifying electricity).

.02 Under § 45J(d), an advanced nuclear power facility is a nuclear facility that meets all of the following requirements:

(1) The facility consists of a nuclear power reactor that uses nuclear energy to produce electricity. For purposes of this

2006–18 I.R.B. 855 May 1, 2006

(2) If the total nameplate capacity of all qualifying facilities for which applications are submitted exceeds the national megawatt capacity limitation, the national megawatt capacity limitation will be allocated among the facilities in proportion to their nameplate capacities.

.04 Service Action . On or before December 31, 2014, the Service will accept or reject the taxpayer’s application and will notify the taxpayer, by letter, of its decision. If the taxpayer’s application is accepted, the acceptance letter will state the amount of the national megawatt capacity limitation allocated to the facility.