Committee reviews electricity generation taxation options; LSO to draft bill updates including repeal of nuclear exemption

The Legislative Service Office presented an issue brief on state taxation of electricity generation and the Revenue Committee discussed options ranging from the existing per‑megawatt excise taxes to a broader gross‑receipts or gross‑earnings tax on electricity production.

LSO staff summarized current statute: an excise tax on electricity generated from wind at $1 per megawatt‑hour (cited to statute in the 39‑22 series) and a $5 per megawatt‑hour tax on electricity from nuclear reactors (cited to the 39‑23 series); both statutes include common exemptions such as federal/state/city/county‑owned facilities and a producer’s personal consumption exemption not exceeding 500 kilowatt‑hours in a 24‑hour period. LSO also explained an exemption for certain advanced nuclear reactors, including the statute’s condition that, beginning July 1, 2035, the exemption only applies if at least 80 percent of uranium used is sourced in the United States.

LSO and committee members discussed a previously…