The US nuclear sector is stepping up its lobbying efforts to preserve the Inflation Reduction Act tax credits, which it claims are essential for supplying the energy demand driven by artificial intelligence. The industry was taken aback when members of the House Ways and Means Committee, which drafts tax laws, said on Monday that they will phase out nuclear energy subsidies beginning in 2029.
Now, lobbyists are vying with politicians to reverse or scale down subsidies to the nuclear sector, which, until recently, enjoyed greater bipartisan support than other low-carbon energy sources like solar and wind. Frank Maisano, a partner in the policy and resolution division of the law and lobbying firm Bracewell, predicted a vigorous push.
The first quarter of 2025 saw a rise in lobbying expenditures by nuclear businesses and industry associations. The $424,000 spent by Oklo, the nuclear technology startup supported by Sam Altman, the CEO of OpenAI, represents a more than 500% annual growth.
According to Jacob DeWitte, chief executive of Oklo, the ways and means plan “undermines the momentum” in the US nuclear industry.
“The importance of tax credits in reducing the risk of early-stage capital and project developments cannot be overstated. If we want to lead and dominate this market, we must use every tool in our toolbox.”
The Nuclear Energy Institute and nuclear reactor companies NuScale Power and TerraPower also upped their expenditures. Constellation Energy, which has teamed up with Microsoft to restart the Three Mile Island facility in Pennsylvania, increased its lobbying expenditures by 16 percent in the first quarter, spending over $1.7 million. Proponents of the industry stated that their goal was to win over moderates who already had nuclear reactors in their states, such as Senator Lisa Murkowski of Alaska and Governor Henry McMaster of South Carolina.
Additionally, they want to encourage President Donald Trump, who has supported nuclear development, to step in. The government is anticipated to issue an executive order next week that will change federal safety requirements to expedite the building of nuclear power projects.
According to Heather Reams, head of the center-right energy advocacy organization Citizens for Responsible Energy Solutions, “what came out of ways and means is concerning and disappointing.” “When the president weighs in, that will have a lot of sway, but it isn’t hitting the mark on what his nuclear goals are.”
The timelines proposed in the draft are also anticipated to draw criticism from lobbyists, who claim that they jeopardize the advancement of emerging technologies like small modular reactors (SMRs), which are essential for supplying the energy demand driven by artificial intelligence.
“We want to support the nuclear industry,”
Republican lobbyist Eric Levine stated.
“All the AI technology in the world is useless if we can’t power it if we’re not bringing energy to the grid.”
Some nuclear enterprises, however, see the reduction as a chance to attract private investment to the industry. According to Isaiah Taylor, CEO of Valar Atomics, “industries that rely on federal subsidies tend to get stuck in ruts and less favorable towards innovation.” “I appreciate the administration’s approach to this, which permits it to be quicker and more private.”
