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

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.