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, and providing penalties
Sponsored by the Senate Ways and Means Committee
Where it is now
- Done: IntroducedFebruary 25, 2026
- Done: SubcommitteeFebruary 25, 2026
- Done: Senate committeeApril 14, 2026
- Done: Passes the SenateApril 28, 202643–4
- Skipped: House committeeSkipped
- Done: Passes the HouseApril 15, 202694–1
- Done: To the GovernorMay 18, 2026
- Done: Signed into lawJune 1, 2026
HF 2757 became law → The same legislation passed as HF 2757, so this version was set aside. Go to HF 2757 What’s a funnel?
What’s in it
AI summary Companies that run nuclear power plants can avoid paying certain state sales and use taxes on their equipment and services. To get this tax break, these companies must agree to give a portion of the money they saved to Iowa's state universities to support nuclear energy training programs. The state will track these payments and report on how the programs are doing each year.1
Read the official explanation
This bill makes certain sales and use tax exemptions relating to nuclear electric generation facilities contingent upon making contributions to institutions of higher education (regents institution) governed by the state board of regents (board). NUCLEAR ELECTRIC GENERATION FACILITY —— EXEMPTION. To the extent permissible under an agreement required by the bill, 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 tangible personal property, specified digital products, and services exempted are required to be directly and primarily used for these purposes. The bill defines “nuclear electric generation facility” (facility) to mean a facility located in this state that 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 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. AGREEMENT BY FACILITY. As a condition of receiving the exemption created in the bill, a facility is required to enter into an agreement with the board and the economic development authority (authority) that requires the facility to make a minimum contribution for establishing and maintaining programs and equipment at one or more regents institutions governed by the board that support nuclear energy workforce programs. The agreement shall, at a minimum, require the facility to contribute at least percent of the aggregate value of the exemption received pursuant to the bill for the purpose of establishing and maintaining programs and equipment at a regents institution that supports nuclear energy workforce programs. The agreement with the authority shall establish the date the exemption begins, including whether and to what extent the exemption applies to any tangible personal property or specified digital products sold, or services furnished prior to the agreement date. Beginning January 15, 2028, and each January thereafter, the bill requires the board to submit a report to the general assembly regarding the progress and implementation of the nuclear energy workforce programs. REPORTING BY FACILITY. The bill requires a facility to register with the department. Beginning January 31, 2027, and each January thereafter, a facility receiving an exemption is required to file an annual report with the department of revenue (DOR). The annual report shall provide the aggregate sales price amount of tangible personal property, specified digital products, and services that received an exemption in the previous calendar year. The bill requires DOR to calculate the aggregate value of the exemption based upon the aggregate sales price amounts disclosed in the annual report, and provide the aggregate value of the exemption to the authority, for purposes of calculating the percent contribution for establishing and maintaining programs and equipment at a regents institution that supports nuclear energy workforce programs. SALES AND USE TAX REFUNDS. The bill permits a facility to apply to DOR for the refund of sales or tax upon the sales price of all sales of building materials, supplies, equipment, or from services furnished to a contractor, used in the performance of a written contract with the facility, if certain circumstances apply. Any contractor who willfully makes a false report of taxes paid for purposes of obtaining a sales or use tax refund under the bill commits a simple misdemeanor.
Why it matters. Nuclear electric generation facilities would receive sales and use tax exemptions on certain property and services used for their operations if they agree to contribute a portion of those savings to support nuclear energy workforce programs at state regents institutions. This change is estimated to increase revenue to the Nuclear Energy Workforce Fund by $5.5 million in fiscal year 2027, $2.8 million in fiscal year 2028, $2.9 million in fiscal year 2029, $1.0 million in fiscal year 2030, and $1.0 million in fiscal year 2031.2
Changed since by amendments H-8428, S-5226, S-5225, H-8365; see Amendments.
Senate subcommittee
Named April 16, 2026. On April 21, 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