In a powerful statement of support for American energy independence and President Trump’s energy agenda, South Carolina Gov. Henry McMaster is leading a critical effort to preserve federal tax incentives for nuclear energy development.
The South Carolina governor delivered a compelling letter to the state’s congressional delegation urging the protection of vital nuclear tax credits and loan programs that are essential for completing the V.C. Summer nuclear project and advancing nuclear power nationwide.
A Strategic Energy Imperative
As America faces unprecedented energy demand growth, Gov. McMaster recognizes that nuclear power must play a central role in achieving true energy security. His letter specifically calls for preserving crucial federal tax credits for existing nuclear power.
“South Carolina is about to lose an historic opportunity we’ve been seeking for years and working towards for months: ushering in a nuclear renaissance in South Carolina and across the country,” writes Gov. McMaster. “The country needs power. We’ve been meeting and planning vigorously for months with people and companies who want to build nuclear reactors and who want to buy their power.”
The governor’s urgent appeal comes at a critical juncture as Congress considers eliminating these incentives through budget reconciliation, which would effectively halt the revival of the V.C. Summer project.
Market-Based Solutions for Energy Security
While critics have consistently opposed government subsidies for unproven technologies, nuclear energy represents a compelling case. Unlike intermittent power sources, nuclear provides reliable baseload generation that can power American homes and businesses continuously, regardless of weather conditions.
The tax incentives championed by Gov. McMaster have successfully leveraged private capital for nuclear development at a scale that benefits consumers through enhanced grid reliability and long-term price stability. As the governor emphasizes, these programs “help attract billions of dollars in large-scale private capital and investment necessary for nuclear construction” when “traditional lenders are reluctant to finance new nuclear generation projects.”
Protecting Consumer Investments
The governor’s letter highlights that S. 51, legislation he will soon sign, specifically identifies these federal tax credits and loan programs as critical to completing construction of the V.C. Summer reactors. Without these incentives, private investment becomes virtually impossible, threatening South Carolina’s energy future.
An abrupt elimination of these provisions would not only jeopardize the V.C. Summer project but could raise energy costs for American consumers by reducing future supply and increasing our dependence on less reliable energy sources.
Looking Forward
“South Carolina’s economy is booming, and our population is growing at record rates,” Gov. McMaster notes. “Our prosperity has created demand for infrastructure, workforce, housing, education, transportation, and recreation. All these challenges – now and in the future – require South Carolina to have clean, abundant and affordable power. That means nuclear power. And that means finishing the job at V.C. Summer.”
CASE applauds Gov. McMaster for advocating in support of reliable, affordable energy for American consumers. By preserving strategic investments in nuclear energy, lawmakers can ensure America maintains its competitive edge while keeping prices manageable for families and businesses.
The governor’s leadership exemplifies how targeted tax policies can unlock private investment in critical infrastructure, creating a stronger energy future for South Carolina and the nation as a whole.
