Energy generation resources.
HB 1007 creates a new Indiana tax credit for investments in the manufacture of small modular nuclear reactors in Indiana. The credit equals 20% of a taxpayer’s qualified investment, may be carried forward if unused, and can be passed through to owners of pass-through entities. To claim the credit, taxpayers must document that the investment was made for a small modular nuclear reactor to be manufactured in Indiana and provide information required by the Department of State Revenue.
The bill also adds a new expedited regulatory framework for electric utilities seeking approval to build, buy, lease, or otherwise acquire generation resources. It authorizes utilities to file expedited generation resource plans for extraordinary load growth and separate submittals for specific projects, with shortened commission review deadlines and deemed approval if the Indiana Utility Regulatory Commission does not act in time. The bill further creates a process for projects serving large load customers, requiring substantial financial assurances from the customer, pre-filing meetings with state agencies and the regional transmission organization, and commission findings that the project is just, reasonable, and in the public interest.
In addition, HB 1007 revises existing utility planning and retirement rules. It requires public utilities to file more detailed annual reports on generation resources, retirements, refuelings, demand response, and capacity-market reliance, and it gives the commission authority to investigate whether planned retirements or refuelings could impair reliability. The bill also limits when depreciation rates may be adjusted for accelerated retirements, creates confidentiality protections for sensitive filings, and allows the commission to order utilities to acquire or retain resources if reliability standards are not met.
The bill’s impact on state law is broad: it adds a new corporate tax incentive in the tax code and substantially amends utility regulation in Title 8. It changes how generation projects are approved, how costs may be recovered in rates, how large-load projects are structured, and how the commission monitors reliability and resource adequacy. It also expressly allows some projects to begin construction before filing and provides for expedited appellate review of certain commission orders.
The overall sentiment reflected in the voting history suggests the bill was ultimately supported by majorities in both chambers, but not without resistance. Several proposed amendments failed in the House and Senate, indicating disagreement over the bill’s details and scope. The final House concurrence vote was 63-23, suggesting substantial support for the final version, while the failed amendments point to concerns about utility cost recovery, regulatory oversight, customer protections, and the pace of approval for new generation projects and large-load developments.
HB 1007 adds IC 6-3.1-45 to create a 20% tax credit for qualified investments in manufacturing small modular nuclear reactors in Indiana, affecting taxpayers, pass-through entities, and the Department of State Revenue. It also adds IC 8-1-7.9 and amends IC 8-1-8.5-2.1 and IC 8-1-8.5-13 to establish expedited approval pathways for utility generation acquisitions and large-load customer projects, expand reporting and reliability oversight for public utilities, and alter cost recovery and depreciation treatment for certain generation retirements and refuelings. The bill affects electric utilities, large industrial or commercial customers, the Indiana Utility Regulatory Commission, the Indiana Economic Development Corporation, the Office of Energy Development, and the Office of Utility Consumer Counselor.
The bill appears to have been generally favorable among lawmakers overall, as it passed the House and Senate and ultimately received House concurrence after Senate amendments. However, the failed amendment votes in both chambers suggest there was meaningful debate over how far to streamline utility approvals and how to balance economic development with ratepayer protections and regulatory safeguards. The final votes indicate support for the bill’s core goals of encouraging new generation investment, nuclear manufacturing, and large-load economic development, but with some lingering concern about the details.
The main points of contention appear to have centered on the bill’s expedited regulatory process, the extent of utility cost recovery, and protections for existing customers when serving large-load customers. Opponents or amendment sponsors likely sought changes to the commission’s authority, the deemed-approval timelines, or the financial assurances required from large-load customers, while supporters emphasized reliability, economic development, and faster resource procurement. The failed amendments in both chambers indicate that the most disputed issues were the balance between speed and oversight, and whether utilities and large customers should bear enough financial risk to shield other ratepayers.