text: SECTION 1. MODIFICATIONS OF CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR 
                POWER FACILITIES.
  
      (a) Treatment of Unutilized Limitation Amounts.--Section 45J(b) of 
  the Internal Revenue Code of 1986 is amended--
              (1) in paragraph (4), by inserting ``or any amendment to'' 
          after ``enactment of'', and
              (2) by adding at the end the following new paragraph:
              ``(5) Allocation of unutilized limitation.--
                      ``(A) In general.--Any unutilized national megawatt 
                  capacity limitation shall be allocated by the Secretary 
                  under paragraph (3) as rapidly as is practicable after 
                  December 31, 2020--
                              ``(i) first to facilities placed in service 
                          on or before such date to the extent that such 
                          facilities did not receive an allocation equal 
                          to their full nameplate capacity, and
                              ``(ii) then to facilities placed in service 
                          after such date in the order in which such 
                          facilities are placed in service.
                      ``(B) Unutilized national megawatt capacity 
                  limitation.--The term `unutilized national megawatt 
                  capacity limitation' means the excess (if any) of--
                              ``(i) 6,000 megawatts, over
                              ``(ii) the aggregate amount of national 
                          megawatt capacity limitation allocated by the 
                          Secretary before January 1, 2021, reduced by 
                          any amount of such limitation which was 
                          allocated to a facility which was not placed in 
                          service before such date.
                      ``(C) Coordination with other provisions.--In the 
                  case of any unutilized national megawatt capacity 
                  limitation allocated by the Secretary pursuant to this 
                  paragraph--
                              ``(i) such allocation shall be treated for 
                          purposes of this section in the same manner as 
                          an allocation of national megawatt capacity 
                          limitation, and
                              ``(ii) subsection (d)(1)(B) shall not apply 
                          to any facility which receives such 
                          allocation.''.
      (b) Transfer of Credit by Certain Public Entities.--
              (1) In general.--Section 45J of such Code is amended--
                      (A) by redesignating subsection (e) as subsection 
                  (f), and
                      (B) by inserting after subsection (d) the following 
                  new subsection:
      ``(e) Transfer of Credit by Certain Public Entities.--
              ``(1) In general.--If, with respect to a credit under 
          subsection (a) for any taxable year--
                      ``(A) the taxpayer would be a qualified public 
                  entity, and
                      ``(B) such entity elects the application of this 
                  paragraph for such taxable year with respect to all (or 
                  any portion specified in such election) of such credit,
          the eligible project partner specified in such election (and 
          not the qualified public entity) shall be treated as the 
          taxpayer for purposes of this title with respect to such credit 
          (or such portion thereof).
              ``(2) Definitions.--For purposes of this subsection--
                      ``(A) Qualified public entity.--The term `qualified 
                  public entity' means--
                              ``(i) a Federal, State, or local government 
                          entity, or any political subdivision, agency, 
                          or instrumentality thereof,
                              ``(ii) a mutual or cooperative electric 
                          company described in section 501(c)(12) or 
                          section 1381(a)(2), or
                              ``(iii) a not-for-profit electric utility 
                          which has or had received a loan or loan 
                          guarantee under the Rural Electrification Act 
                          of 1936.
                      ``(B) Eligible project partner.--The term `eligible 
                  project partner' means--
                              ``(i) any person responsible for, or 
                          participating in, the design or construction of 
                          the advanced nuclear power facility to which 
                          the credit under subsection (a) relates,
                              ``(ii) any person who participates in the 
                          provision of the nuclear steam supply system to 
                          the advanced nuclear power facility to which 
                          the credit under subsection (a) relates,
                              ``(iii) any person who participates in the 
                          provision of nuclear fuel to the advanced 
                          nuclear power facility to which the credit 
                          under subsection (a) relates, or
                              ``(iv) any person who has an ownership 
                          interest in such facility.
              ``(3) Special rules.--
                      ``(A) Application to partnerships.--In the case of 
                  a credit under subsection (a) which is determined at 
                  the partnership level--
                              ``(i) for purposes of paragraph (1)(A), a 
                          qualified public entity shall be treated as the 
                          taxpayer with respect to such entity's 
                          distributive share of such credit, and
                              ``(ii) the term `eligible project partner' 
                          shall include any partner of the partnership.
                      ``(B) Taxable year in which credit taken into 
                  account.--In the case of any credit (or portion 
                  thereof) with respect to which an election is made 
                  under paragraph (1), such credit shall be taken into 
                  account in the first taxable year of the eligible 
                  project partner ending with, or after, the qualified 
                  public entity's taxable year with respect to which the 
                  credit was determined.
                      ``(C) Treatment of transfer under private use 
                  rules.--For purposes of section 141(b)(1), any benefit 
                  derived by an eligible project partner in connection 
                  with an election under this subsection shall not be 
                  taken into account as a private business use.''.
              (2) Special rule for proceeds of transfers for mutual or 
          cooperative electric companies.--Section 501(c)(12) of such 
          Code is amended by adding at the end the following new 
          subparagraph:
                      ``(I) In the case of a mutual or cooperative 
                  electric company described in this paragraph or an 
                  organization described in section 1381(a)(2), income 
                  received or accrued in connection with an election 
                  under section 45J(e)(1) shall be treated as an amount 
                  collected from members for the sole purpose of meeting 
                  losses and expenses.''.
      (c) Effective Dates.--
              (1) Treatment of unutilized limitation amounts.--The 
          amendment made by subsection (a) shall take effect on the date 
          of the enactment of this Act.
              (2) Transfer of credit by certain public entities.--The 
          amendments made by subsection (b) shall apply to taxable years 
          beginning after December 31, 2016.
target: This bill amends the Internal Revenue Code, with respect to the tax credit for the production of electricity from advanced nuclear power facilities, to: (1) establish requirements for the allocation of unutilized portions of the national megawatt capacity limitation, and (2) allow public entities to transfer the credit to project partners. If a portion of the 6,000 national megawatt capacity limitation for the credit is unutilized after December 31, 2020, the Internal Revenue Service must allocate the unutilized capacity: (1) first to facilities that were placed in service on or before December 31, 2020, and did not receive an allocation equal to their full nameplate capacity, and (2) then to facilities placed in service after December 31, 2020, in the order in which the facilities are placed in service. The placed-in-service sunset date of January 1, 2021, does not apply to the allocations of unutilized national megawatt capacity.  Qualified public entities may transfer the credit to an eligible project partner. A &quot;qualified public entity&quot; is: (1) a federal, state, or local government or any political subdivision, agency, or instrumentality thereof; (2) a mutual or cooperative electric company; or (3) a not-for-profit electric utility which has or had received a loan or loan guarantee under the Rural Electrification Act of 1936.  An &quot;eligible project partner&quot; includes any person who: (1) is responsible for, or is participating in, the design or construction of the facility; (2) participates in the provision of nuclear steam or nuclear fuel to the facility, or (3) has an ownership interest in the facility.
feat_title: To amend the Internal Revenue Code of 1986 to modify the credit for production from advanced nuclear power facilities.