Common use of Investment Tax Credit Clause in Contracts

Investment Tax Credit. To the extent that the Lessee determines the Nuclear Material is or becomes eligible for any investment or similar credit under the Code as now or hereafter in effect, the Lessee shall request in writing that the Lessor elect to treat the Lessee as having acquired such Nuclear Material, and, if permitted to do so under the Code and under any other applicable law, rule or regulation, the Lessor, pursuant to such request of the Lessee, shall provide the Lessee with an appropriate investment credit election and the Lessee shall consent to such election. A condition to the Lessor's making such election will be the provision by the Lessee of a report or statement with respect to all Nuclear Material as to which the investment credit election is applicable. Such report or statement shall contain such information and be in such form as may be required for Internal Revenue Service reporting purposes. The Lessee shall indemnify and hold harmless the Lessor and any affiliates with respect to any adverse tax consequence, other than the loss of the credit, which may result from such election including, but not limited to, any increase in the Lessor's income taxes due to any required reduction of the Lessor's tax basis below the Lessor's cost of the Nuclear Material, and the Lessee agrees to pay to or on behalf of the Lessor, or otherwise make available to the Lessor, funds sufficient to put the Lessor in the same after-tax position (other than by reason of the loss of the investment credit) the Lessor would have been in if such election had not been made.