As leaders and public servants with extensive experience in the U.S. Navy and the U.S. House of Representatives, we understand the importance of innovative solutions to address today’s most pressing challenges. The United States currently has unprecedented demand for energy as we look to onshore American jobs and win the AI race against China and Russia. Investing in nuclear energy isn’t just an option. It’s a necessity for national and economic security. Maintaining existing nuclear tax incentives is crucial to a viable energy future in America.
In 2022, policymakers adopted tax credits to increase investment in energy production and current operations, including nuclear energy. The incentives prioritized additional generation from existing nuclear power plants while encouraging the deployment of new nuclear technologies. With a potentially long and complicated budget reconciliation underway, we’re once again at a critical juncture as Congress works to finalize a resolution.
The production and investment tax credits promote power uprates (upgrades that allow a plant to generate more electricity), encourage plant restarts, and incentivize new nuclear builds. Additionally, the targeted tax incentive is necessary for ensuring the continued operation of the current nuclear fleet, which produces about 20% of our nation’s electricity. The urgency increases when we consider 13 reactors closed in the U.S. between 2013 and 2022. Due in part to the credits, facilities are not only extending their operating licenses but also examining restarts for decommissioned plants. These are strategic advancements for American energy dominance, building on a legacy of nuclear innovation.
The U.S. needs more nuclear now for the sake of our grid reliability and our national security.
In the face of growing global competition, it’s crucial for the U.S. to assert its leadership in the energy sector. The stark reality: The U.S. is falling behind Russia and China in the nuclear energy race, underscoring the urgent need for strategic investments to maintain our competitive edge and ensure energy security. With Russia controlling an estimated 70% of the exports abroad and China potentially approving upwards of 100 domestic reactors in the next decade, the U.S. must step up its nuclear game.
The U.S. can rise to the challenge posed by state-owned enterprises by fostering investment and innovation in nuclear technologies. When considering our allies, a nuclear partnership represents a century-long commitment, from construction to decommissioning — a commitment we can’t afford to cede to Russia or China. The U.S. can’t export technology it’s not making here at home, so each day that passes, we risk losing influence to Russian and Chinese enterprises while compromising our national security. Fortunately, we possess the tools necessary to succeed.
The tax credits help us achieve new levels of nuclear investment, which is critical for furthering our energy and national security. Compared to other energy sources, nuclear energy stands out in the crowd. With a capacity factor of more than 90%, nuclear plants operate at higher efficiency levels than any other energy source, ensuring a consistent power supply in an increasingly clean grid. With public support and federal investment, the U.S. is charting the path for an all-of-the-above energy mix.
BIG TECH PLEDGES TO TRIPLE NUCLEAR CAPACITY BY 2050
The benefits of these tax incentives are substantial. They unlock expanded power upgrades, adding more than three gigawatts of reliable, affordable, and clean energy to the grid. That’s enough electricity to power millions of homes and businesses without compromising our security or the environment. Additionally, these incentives help keep existing nuclear power plants in operation through subsequent license renewals, preserving current levels of reliable electricity generation. That’s not all. The funding also paves the way for exploring next-generation technologies, driving us toward an innovative energy system.
Having dedicated our lives to public service, we firmly believe in the promise of the U.S. and the opportunities for our leadership. Investing in nuclear energy is investing in America’s success. We urge Congress to preserve and expand an energy source vital for our leadership at home and abroad. Legislators can protect nuclear tax incentives in the budget discussions for the sake of our national security and independent energy future.
The Honorable Tom Graves is a former U.S. representative for Georgia’s 14th Congressional District. He is a member of the Nuclear Matters Advocacy Council. Admiral Richard Mies completed a distinguished 35-year career in the Navy and commanded U.S. Strategic Command for four years prior to retirement in 2002. He serves as the co-chairman of the Nuclear Energy and National Security Coalition.