SB 2721

This bill creates financial incentives to encourage the development of small modular nuclear reactors (SMNs) in Illinois through two main tax provisions. First, it establishes a 20% income tax credit for taxpayers who invest in manufacturing small modular nuclear reactors within the state, with unused credits able to be carried forward for up to five years. Second, it provides a complete sales and use tax exemption for tangible personal property purchased for the construction or operation of these reactors, which are defined as nuclear facilities with a generating capacity of no more than 470 megawatts that require U.S. Nuclear Regulatory Commission licensing. These incentives aim to attract nuclear energy investment and manufacturing to Illinois by significantly reducing the tax burden associated with developing this emerging clean energy technology.