IL SB2721

Creates a 20% income tax credit for taxpayers investing in the manufacture of small modular nuclear reactors in Illinois, effective for taxable years beginning on or after January 1, 2026

Excess credits may be carried forward for up to 5 taxable years following the year the excess credit was generated

Exempts tangible personal property purchased for constructing or operating small modular nuclear reactors from the Use Tax, Service Use Tax, Service Occupation Tax, and Retailers' Occupation Tax, beginning January 1, 2027

Defines "small modular nuclear reactor" as a nuclear reactor with rated electric generating capacity of 470 megawatts or less, capable of operating alone or in combination with similar reactors, and required to be licensed by the U.S. Nuclear Regulatory Commission

Includes reactors that produce hydrogen for energy storage, fuel, or other uses within the definition of qualifying small modular nuclear reactors