IRS Instruction 7213 – dit In an era where clean energy incentives are crucial for sustainable development, the IRS offers tax credits to support nuclear power production. The Nuclear Power Production Credit, claimed via IRS Form 7213, provides financial benefits for electricity generated from qualifying nuclear facilities. This credit encompasses two key provisions: the advanced nuclear power production credit under Internal Revenue Code (IRC) Section 45J and the zero-emission nuclear power production credit under Section 45U. As of 2026, these credits encourage innovation and maintenance in the nuclear sector, helping taxpayers offset costs while contributing to zero-emission energy goals.
This SEO-optimized guide breaks down the IRS Instructions for Form 7213 (Rev. December 2025), including eligibility, calculations, filing requirements, and recent updates. Whether you’re a facility owner, investor, or tax professional, understanding these instructions can maximize your tax savings. We’ll also provide a direct download link for the official PDF.
What is IRS Form 7213 and the Nuclear Power Production Credit?
IRS Form 7213 is the designated form for claiming credits related to nuclear-generated electricity. It serves two primary purposes:
- Part I: Credit for Production from Advanced Nuclear Power Facilities (Section 45J): This targets innovative nuclear technologies. Eligible facilities receive a credit of up to 1.8 cents per kilowatt-hour (kWh) of electricity produced and sold during the first eight years of operation. The credit is capped by a national megawatt capacity limitation (NMCL) of 6,000 megawatts, with allocations provided by the IRS.
- Part II: Zero-Emission Nuclear Power Production Credit (Section 45U): Introduced by the Inflation Reduction Act of 2022, this credit supports existing nuclear plants. It offers a base rate of 0.3 cents per kWh (potentially increased to 1.5 cents if prevailing wage requirements are met) for electricity produced and sold after December 31, 2023, through tax years ending before 2033.
These credits aim to bolster nuclear energy as a reliable, low-carbon power source. For instance, Section 45J has been utilized by projects like Georgia Power’s Vogtle Units 3 and 4, marking some of the first claims in recent years. Unlike renewable credits for wind or solar, nuclear credits focus on advanced safety and efficiency features.
Who Must File Form 7213?
You must file Form 7213 if you’re claiming the credit directly as the owner of a qualifying nuclear facility. File a separate form for each facility. Key eligibility criteria include:
- For Section 45J: The facility must use a reactor design approved by the Nuclear Regulatory Commission (NRC) after December 31, 1993, produce electricity via nuclear energy, and have an IRS-allocated facility limitation. Qualified public entities (e.g., government-owned utilities) can transfer credits to eligible project partners like developers or financiers.
- For Section 45U: The facility must be placed in service before August 16, 2022, not qualify as advanced under 45J, and produce zero-emission electricity sold to unrelated parties. However, specified foreign entities are ineligible for tax years beginning after July 4, 2025, and foreign-influenced entities after July 4, 2027.
Exceptions: If you receive a share of the credit via Schedule K-1 from a pass-through entity (e.g., partnership or S corporation), report it directly on Form 3800 without filing Form 7213—unless you’re an estate or trust allocating to beneficiaries.
Applicable entities (e.g., tax-exempt organizations) can elect direct payments under Section 6417, treating the credit as a refundable tax payment.
Key Changes and Updates for 2026
The December 2025 revision of Form 7213, posted on January 14, 2026, includes several important updates:
- Foreign Entity Restrictions: No Section 45U credit for specified foreign entities after July 4, 2025, or foreign-influenced entities after July 4, 2027.
- Prevailing Wage Requirements: For Section 45U, attach new Form 7220 to claim the increased credit (multiplied by 5) if wage and apprenticeship rules are met.
- Credit Transfers: Partnerships and S corporations can transfer credits under Section 6418 for cash, requiring pre-filing registration with the IRS.
- NMCL Allocations: All 6,000 megawatts are available for Section 45J, with applications due within 30 days of placement in service per IRS Notice 2023-24.
Stay updated via IRS.gov/Form7213 for future developments.
How to Calculate and Claim the Credit?
Section 45J Calculation
- Tentative Credit: 1.8 cents × kWh produced and sold.
- Credit Percentage: Allocated facility limitation ÷ nameplate capacity.
- Final Credit: Lesser of (tentative credit × credit percentage) or $125 million per 1,000 megawatts of allocation. No reductions for grants or other financing.
Complete Part I by providing facility details (e.g., name, address, coordinates, IRS acceptance letter) and calculations on lines 1–11.
Section 45U Calculation
- Base Credit: 0.3 cents (inflation-adjusted) × kWh sold.
- Reduction: Lesser of base credit or 16% of excess gross receipts over (2.5 cents, adjusted × kWh sold).
- Increased Credit: Multiply by 5 if prevailing wages paid (use Form 7220).
Fill Part II with facility info (including pre-filing registration number) and lines 1–14 for gross receipts, ZEC payments, and allocations.
Attach Form 7213 to your tax return (e.g., Form 1120 for corporations). For pass-through entities, use specific Schedule K-1 codes.
Filing Tips and Requirements
- Attachments: IRS acceptance letter (45J), NRC license (45U), Form 7220 (increased 45U credit).
- Pre-Filing Registration: Required for transfers or elective payments at IRS.gov.
- Recordkeeping: Maintain records for wage compliance and electricity sales.
- Common Errors to Avoid: Use separate forms per facility; ensure coordinates are accurate; don’t claim both credits for the same facility.
Download the Official IRS Instructions for Form 7213
For the full details, download the PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/i7213.pdf.
FAQs on IRS Form 7213 and Nuclear Power Production Credit
- Can I claim both credits? No—advanced facilities under 45J are ineligible for 45U.
- What if my facility is multi-reactor? Each reactor is treated as a separate facility.
- How do transfers work? Eligible entities can sell credits for cash, irrevocable once elected.
- Is inflation adjustment automatic? Yes, for Section 45U base rates.
By leveraging these credits, nuclear operators can reduce tax liabilities while advancing clean energy. Consult a tax advisor for personalized guidance, as rules may evolve.