Lawmakers question $280M tax incentives for small nuclear plants during state budget shortfall

A bill that could keep coal plants online and give tax incentives to small modular nuclear reactors is headed to the governor’s desk. Some lawmakers question whether Hoosiers should pay for those incentives with a $2 billion shortfall in the state budget.

House Bill 1007 would allow a company that manufactures small nuclear plants to claim a 20 percent tax credit — a minimum of $280 million. Rep. Matt Pierce (D-Bloomington) asked the House to revise the bill.

“Imagine what we could do with $280 million when it comes to providing people with health care, child care, other essential services that people may rely upon the state for,” he said.

That’s about twice the amount lawmakers have been budgeting for local public health services this session.

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The bill’s author, Rep. Ed Soliday (R-Valparaiso), said Indiana needs to be able to compete with other states. He said one manufacturer expects to create 500 jobs that pay roughly $100,000 a year.

“We won’t get a dime if they don’t come here, but if we are able to incentify them to come we get 80 percent of something, not a 100 percent of nothing,” Soliday said.

The bill also requires utilities that want to close a coal plant to replace it with the same amount of energy capacity or more. That could put cleaner energy sources like wind and solar at a disadvantage and limit some creative ways utilities can meet that demand without adding new power plants.

Rebecca is our energy and environment reporter. Contact her at [email protected] or follow her on Twitter at @beckythiele.