Committee hears proposal for Reliable Energy Investment tax credit to support clean reliable generation

The House Finance Committee heard testimony on a new Reliable Energy Investment Tax Credit in House Bill 500 designed to attract investment in clean, reliable generation and energy storage projects.

Alex Charlton, senior manager of state government affairs for Constellation, described the credit’s mechanics and eligibility. Charlton said qualifying projects must provide at least 100 megawatts of new or additional reliable clean generation and meet capital and job requirements. The credit scales to project size at roughly $300,000 per new or additional megawatt up to a $100 million program cap, a total that would roughly correspond to 333 megawatts of new capacity under the draft language.

Charlton emphasized the program is structured so tax credits “are not provided until the project is operational and connected to the grid,” a safeguard intended to prevent state support for speculative projects that do not come to fruition.

Representative Tom Mahaffey, who testified in support, noted the provision would apply beyond traditional nuclear uprates to newer technologies such as small modular reactors (SMRs) and other clean generation approaches. Mahaffey said some large operators, such as the operator at the Three Mile Island site, are not seeking credits for existing investments but that future uprates and new projects could qualify.

Committee members discussed whether the 100-megawatt minimum should be reduced to allow smaller facilities to qualify. The draft credit would be available for projects under construction within the next 11 years (tax credit sunsets in December 2036 for projects begun within that window). No formal action was taken at the hearing.

Discussion vs. decision: testimony provided technical detail and policy rationale; the committee did not vote and may consider amendments at the scheduled May 7 meeting.

Next steps: committee consideration and potential amendments before any vote.