Inflation Reduction Act (45U / 45Y / 48E / HALEU)
Enacted law- Law
- P.L. 117-169
- Bill / vehicle
- H.R.5376
- Status
- Enacted law
- Date
- Signed Aug. 16, 2022
- Administration
- Biden
- Topic
- Nuclear tax credits; HALEU funding
- Sponsors
- Budget reconciliation package
What it does
Gave nuclear its strongest-ever federal economics. Section 45U is a production tax credit (up to ~$15/MWh) for existing plants through 2032 — effectively a price floor that protects reactors when wholesale power prices crash. Sections 45Y/48E are technology-neutral credits for new clean power (a production credit or an investment credit worth up to ~50% of capital cost with bonuses) that apply to new nuclear. It also added $700 million for the domestic HALEU supply chain.
Why it matters
The 45U price floor and the 48E investment credit fundamentally de-risked nuclear for private investors. Much of the 2023–2026 build-out math depends on these credits — which is why their treatment in the 2025 OBBBA mattered so much.
Primary sources
Learn the underlying ideas
New here? These concept explainers give you the background to understand what this law is actually doing.