Michigan House passes bipartisan nuclear energy incentive package

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(The Center Square) – The Republican-led Michigan House has passed a bipartisan bill package looking to encourage the use of nuclear energy in the state.

This will be done largely via tax incentives and taxpayer-funded grants.

The plan was first proposed by State Rep. Jamie Thompson, R-Brownstown. She hailed its passage as a great victory for Michigan and its citizens.

“Our state has long had significant manufacturing prowess, and these bills would create jobs and opportunity in the energy sector,” Bierlein said. “As this evolving technology continues to come online, job providers are going to be looking to states that have the proper foundation in place – with operational know-how, a workforce and adequate facilities – to accommodate production. Through these bills, we can assemble that foundation.”

House Bills 4124-29 lay out a number of different corporate tax credits –specifically for small modular nuclear reactors –  education grant programs and employment incentives.

House Democrats have also expressed support for the plan, with some even sponsoring or joining as co-sponsors. They argued its passage will establish Michigan as a leader in “clean, reliable energy technology.”

“This package will help advance nuclear technology and build the talent pipeline that will power Michigan’s energy future,” said state Rep. Joey Andrews, D-St. Joseph. Andrews sponsored one of the bills. “By creating educational opportunities in the nuclear and hydrogen energy fields and providing pathways for students to stay, grow and build their careers right here at home, we’re positioning Michigan at the forefront of energy innovation and workforce development, securing a prosperous future for our state.”

According to fiscal analyses conducted by the state in the spring, the bills would cost the taxpayers an estimated:

• House Bill 4124: A drop in state revenue by about $2.5 million annually starting in 2026.

• House Bill 4125: Unclear “increased costs” for the Department of Labor and Economic Opportunity.

• House Bill 4126: Creation of the Nuclear and Hydrogen Education Grant Program Fund with unspecified associated costs or a revenue source.

• House Bill 4127: No fiscal impact.

• House Bill 4128: An “indeterminate” loss in state revenue. The bill would prohibit a taxpayer from claiming a credit for more than 10 years and limit the total credit claimed for an individual taxpayer to $10 million.

• House Bill 4129: Unclear “increased costs” for the Department of Labor and Economic Opportunity. Creation of the Nuclear and Hydrogen Graduate Attraction and Retention Program Fund with unspecified associated costs or a revenue source.

This is the second time the six-bill package was introduced, after it stalled in the legislature last year.

This time, the bills passed out of the House Energy Committee with overwhelming bipartisan support. On Tuesday, they also passed the House. They have now been referred to the Senate for consideration in its Energy and Environment Committee.

Multiple environmental groups have expressed concern with the bills. The Michigan Chapter of the Sierra Club is one of those. It submitted testimony in March expressing its opposition to the bill package.

“While proponents claim small modular nuclear reactors are a clean and innovative energy solution, the reality is that they are an expensive, unproven technology that diverts critical public funds away from more cost-effective and immediately available renewable energy options,” said Tim Minotas, Sierra deputy legislative and political director. “Rather than subsidizing an industry with an uncertain future, our state should invest in proven, rapidly deployable clean energy sources such as wind, solar, geothermal, and battery storage.”

Supporters of the legislation said that these incentives will help advance nuclear and hydrogen energy as the next generation of energy for Michigan. Some even say it could be Michigan’s “only” energy option moving forward.

“In the U.P., small modular reactors are our most likely pathway forward,” said state Rep. Dave Prestin, R-Cedar River. “With the ridiculous new green energy mandates—which will never work—being forced here in Michigan, paired with the unreliability and astronomical expenses associated with wind and solar energy production, unique production methods like SMRs will be our only option. These units are portable, reliable and will secure consistent and affordable energy production in even the most remote corners of the U.P.”