Making certain sales and use tax exemptions relating to nuclear electric generation facilities, web search portal businesses, and data center businesses contingent upon making contributions to institutions of higher education governed by the state board of regents

This bill makes certain sales and use tax exemptions relating to nuclear electric generation facilities, web search portal businesses, and data center businesses contingent upon making contributions to institutions of higher education governed by the state board of regents. 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. _____ 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 economic development authority (authority) that requires the facility to make a minimum contribution for establishing and maintaining a nuclear engineering program at an institution of higher education governed by the state board of regents (regents institution). The agreement shall, at a minimum, require the facility to contribute at least 5 percent of the aggregate value of the exemption received pursuant to the bill for the purpose of establishing and maintaining a nuclear engineering program at a regents institution. 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. REPORTING BY FACILITY. The bill requires a facility to register with the department. Beginning January 31, and each January 31 thereafter, a facility receiving 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 5 percent contribution for establishing and maintaining a nuclear engineering program at a regents institution. WEB SEARCH PORTAL AND DATA CENTER BUSINESSES —— AGREEMENT. For a web search portal business or data center business (business) that is new construction or an addition to an existing property on or after January 1, 2027, and as a condition of receiving the existing sales and use tax exemption, the business is required to enter into an agreement with the authority that requires the business to make the same minimum contribution for establishing and maintaining a nuclear engineering program at a regents institution as a nuclear electric generation facility. The agreement shall, at a minimum, require the business to contribute at least 5 percent of the aggregate value of the exemption received pursuant to the bill for the purpose of establishing and maintaining a nuclear engineering program at a regents institution. REPORTING.3, subsection 92, 93, or 95. Beginning January 31, 2026, a business receiving a sales and use tax exemption is required to register with DOR and file an annual report with DOR. The annual report shall describe the aggregate sales price amount of fuel or electricity purchased that is exempt from sales and use tax in the previous calendar year. For a business that is new construction or an addition to an existing property on or after January 1, 2027, the bill requires the annual report to contain more information about the sales and use tax exemption provided to the business by requiring the annual report to contain the aggregate sales price amount of all exempt property, including but not limited to computers, equipment, cooling systems, and power systems. _____ aggregate value of the exemption to the authority, for purposes of calculating the 5 percent contribution for establishing and maintaining a nuclear engineering program at a regents institution.