Bills › 91st General Assembly
Relating to nuclear electric generation facilities by creating sales and use tax exemptions and refunds, making appropriations to the state board of regents for establishing and maintaining a nuclear energy workforce, making penalties applicable, and including applicability and retroactive applicability provisions
Sponsored by the House Ways and Means Committee
Where it is now
- Done: IntroducedMarch 24, 2026
- Done: SubcommitteeMarch 24, 2026
- Done: House committeeApril 1, 2026
- Done: Passes the HouseApril 15, 202694–1
- Done: Senate committeeApril 15, 2026
- Done: Passes the SenateApril 28, 202643–4
- Done: To the GovernorMay 18, 2026
- Done: Signed into lawJune 1, 2026
Signed into law What’s a funnel?
What’s in it
AI summary Iowa would stop charging sales tax on certain items and services used to build, fix, or restart nuclear power plants. This change applies to facilities that use nuclear processes to make electricity and are located within the state. Companies must provide specific paperwork to show they qualify for these tax breaks.1
Read the official explanation
This bill creates sales and use tax exemptions relating to commencing or restarting nuclear electric generation facilities. The bill exempts tangible personal property or specified digital products sold and services furnished are exempted from the state sales and use tax (exemption) before, during, or after the site preparation, construction, reconstruction, replacement, alteration, repair, safe storage, maintenance, or the restarting after decommissioning of a nuclear electric generation facility. The bill defines “nuclear electric generation facility” (facility) to mean a facility commencing or restarting on or after January 1, 2028, that is located in this state, uses nuclear fission, fusion, or other nuclear processes to generate electricity for sale or for use in the transmission or distribution grid and is licensed by the federal nuclear regulatory commission. The exemption does not apply to the following: (1) motor vehicles registered under Code chapter 321, (2) tangible personal property or specified digital products sold, or services furnished, without the facility providing its exemption certificate, and (3) tangible personal property or specified digital products sold, or services furnished, prior to January 1, 2025. The definition of facility in the bill is comprehensive and includes but is not limited to nuclear reactors, storage facilities, equipment, electrical generation, and other structures. The bill requires the department of revenue to issue guidance about acceptable documentation required to obtain the exemption and exemption certificate procedures. The bill also specifies the department of revenue may adopt rules to administer the bill. The bill applies retroactively to January 1, 2025, for qualifying tangible personal property or specified digital products sold, or services furnished on or after that date.
Why it matters. Businesses that build, repair, or restart licensed nuclear electric generation facilities would no longer pay state sales and use tax on certain property and services. The Department of Revenue would provide guidance and rules for these tax exemptions, and the bill would increase revenue to the Nuclear Energy Workforce Fund by $1.4 million in fiscal year 2027, fiscal year 2028, and fiscal year 2029. During those same years, the bill is estimated to decrease revenue to the General Fund by $20.1 million in fiscal year 2027, $13.8 million in fiscal year 2028, and $7.0 million in fiscal year 2029.2
Changed since by amendments H-8428, S-5226, S-5225, H-8365; see Amendments.
House subcommittee
Named March 24, 2026 (as HSB 767). On March 25, 2026 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill creates a Nuclear Energy Workforce Fund for university programs and provides sales and use tax exemptions for the construction or expansion of nuclear energy facilities. It is estimated that the bill will increase revenue to the Nuclear Energy Workforce Fund by $1.4 million in fiscal year 2027, fiscal year 2028, and fiscal year 2029. During those same years, the bill is estimated to decrease revenue to the General Fund by $20.1 million in fiscal year 2027, $13.8 million in fiscal year 2028, and $7.0 million in fiscal year 2029, while also decreasing the SAVE Fund and LOST distributions.4
Read the fiscal note
Description
House File 2757 creates the Nuclear Energy Workforce Fund. Moneys in the Fund are appropriated to the Board of Regents (BOR) to establish and maintain programs and equipment at Regents universities that support nuclear energy workforce programs. Moneys in the Fund at the close of a fiscal year remain in the Fund and do not revert. Interest and earnings on moneys in the Fund are credited to the Fund.
The Bill creates a sales and use tax exemption and refund for the construction and expansion of nuclear energy facilities. The Bill applies retroactively to January 1, 2026, for the restarting of a decommissioned nuclear energy facility. To qualify for the exemption, a nuclear energy facility must commence commercial operations of at least one unit of the facility on or after January 1, 2028. The sales and use tax exemption ends when a nuclear energy facility begins commercial operation. The exemption and refund end on July 1, 2051.
The Bill requires a nuclear energy facility receiving the sales and use tax exemption to annually, for up to four years, contribute to the Nuclear Energy Workforce Fund an amount equal to $2,200 for each megawatt of nameplate capacity that the nuclear energy facility is approved to produce by the Iowa Utilities Commission.
The Bill requires the BOR to submit an annual report beginning January 15, 2028, to the General Assembly on the progress and implementation of nuclear energy workforce programs. The Iowa Department of Revenue (IDR) is authorized to adopt administrative rules to administer the exemption.
Background
The Duane Arnold Energy Center, located in Palo, is Iowa’s only nuclear energy facility. The Center was in commercial operation from 1974 to 2020 and is expected to return to commercial operation in 2029.
Assumptions
- Exempted transactions prior to July 1, 2026, will impact FY 2027. Exempted transactions on or after July 1, 2026, will impact the fiscal year in which they occur.
- One nuclear energy facility will be under construction between January 1, 2025, and December 31, 2028, and will be commercially operational on January 1, 2029. No other nuclear energy facility project will take place during the projection period.
- The cost to construct or restart a nuclear energy facility is assumed to be $1.600 billion. This cost will be spread out equally over the construction or restarting period.
- Of the expected construction costs, 65.0% will be subject to the sales and use tax.
- Nuclear energy facilities have a nameplate capacity of 615 megawatts.
- Nuclear energy facilities have a maximum production capacity of 5.387 billion kilowatt-hours (kWh) per year and operate at 90.0% of maximum capacity.
- The value of goods and services sold to nuclear energy facilities will increase by 2.4% annually.
- Contributions to the Nuclear Energy Workforce Fund are made in the fiscal year after the calendar year in which sales and use tax exemptions and refunds are reported.
- All nuclear energy facilities in the State will be eligible to receive the sales and use tax exemption and refund created in the Bill.
- The exemption and refund created in the Bill do not apply to operating, maintenance, and fuel expenses.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local option sales tax (LOST) distributions are estimated to be 0.95% of taxable expenditures.
Fiscal Impact
House File 2757 is estimated to increase revenue to the Nuclear Energy Workforce Fund and decrease revenue to the General Fund, the SAVE Fund, and LOST by the amounts shown in Figure 1.
Figure 1 — Fiscal Impact of House File 2757 (in Millions)
Nuclear Energy
Workforce Fund General Fund SAVE LOST
FY 2027 $ 1.4 $ -20.1 $ -4.0 $ -3.8 FY 2028 1.4 -13.8 -2.8 -2.6 FY 2029 1.4 -7.0 -1.4 -1.3
Sources
- Iowa Department of Revenue
- World Nuclear Association
- United States Energy Information Administration
- NucNet Independent Nuclear News
- Legislative Services Agency calculations
- Final Fiscal Note — Nuclear Electric Generation Facilities, Sales Tax Exemption · May 20, 2026
- Nuclear Electric Generation Facilities, Sales Tax Exemption · April 28, 2026
- Sales Tax Exemption for Nuclear Generation Facilities, Use of Funds · April 23, 2026
- Nuclear Electric Generation Facilities, Sales Tax Exemption · April 22, 2026
- Nuclear Electric Generation Facilities, Sales Tax Exemption · April 8, 2026
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91st General Assembly