By Andi Anderson
A bill offering major tax incentives for small nuclear power plants is moving forward in Indiana, raising debate among lawmakers about spending priorities. House Bill 1007, now on the governor’s desk, allows companies manufacturing small modular reactors to claim a 20% tax credit—amounting to at least $280 million.
Some legislators, like Rep. Matt Pierce (D-Bloomington), argue the funding could be better spent on critical services like health care and child care, especially with the state facing a $2 billion budget shortfall. He noted the incentive is double the current budget for local public health services.
In contrast, Rep. Ed Soliday (R-Valparaiso), who authored the bill, said Indiana needs to remain competitive. A nuclear manufacturer is considering Indiana for a facility that would create 500 jobs with average salaries around $100,000.
Soliday stressed the state only gains if the company commits. “We get 80 percent of something, not a 100 percent of nothing,” he said.
The bill also impacts Indiana’s energy landscape. It requires that any coal plant closure be offset by new energy sources of equal or greater capacity.
Critics argue this could hinder the growth of renewable sources like wind and solar, as well as flexible solutions like battery storage or demand-side energy programs.
As Indiana navigates energy needs and fiscal challenges, House Bill 1007 highlights the tension between economic incentives and public service funding. The final decision now rests with the governor.
Photo Credit: gettyimages-zoran-zeremski
Categories: Indiana, Energy