HF 2757

House
File
2757
-
Enrolled
House
File
2757
AN
ACT
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.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
262.101
Nuclear
energy
workforce
fund
——
appropriation
——
report.
1.
A
nuclear
energy
workforce
fund
is
established
in
the
office
of
the
treasurer
of
state
under
the
control
of
the
state
board
of
regents.
The
fund
consists
of
the
contributions
made
to
the
fund
pursuant
to
section
423.3,
subsection
111,
and
any
other
appropriations
made
to
the
fund.
Moneys
in
the
fund
shall
be
separate
from
the
general
fund
of
the
state
and
shall
not
be
considered
part
of
the
general
fund
of
the
state.
Moneys
in
the
fund
shall
be
used
only
as
specified
in
this
section
and
shall
be
appropriated
only
for
the
uses
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
and
shall
not
be
transferred,
used,
obligated,
appropriated,
House
File
2757,
p.
2
or
otherwise
encumbered,
except
as
provided
in
this
section.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
the
fund.
2.
Moneys
in
the
fund
are
appropriated
to
the
board
for
the
purpose
of
establishing
and
maintaining
programs
and
equipment
at
one
or
more
institutions
of
higher
education
governed
by
the
board
that
support
nuclear
energy
workforce
programs.
In
making
determinations
that
support
nuclear
energy
workforce
programs,
the
board
shall
consider
any
recommendations
made
by
the
Iowa
nuclear
energy
task
force
established
by
executive
order.
3.
Beginning
January
15,
2028,
and
each
January
15
thereafter,
the
board
shall
submit
a
report
to
the
general
assembly
regarding
the
progress
and
implementation
of
the
nuclear
energy
workforce
programs
established
at
the
institutions
governed
by
the
board.
The
reports
shall
include
but
are
not
limited
to
the
numbers
of
students
and
educators
participating
in
the
programs
and
the
allocation
of
funds
appropriated
for
the
programs.
Sec.
2.
Section
423.3,
subsection
80,
paragraph
c,
Code
2026,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(3)
(a)
With
regard
to
a
written
contract
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
subparagraph
(1),
that
is
a
nuclear
electric
generation
facility,
the
sales
price
of
building
materials,
supplies,
equipment,
or
services
is
exempt
from
tax
by
this
subsection
only
to
the
extent
the
building
materials,
supplies,
equipment,
or
services
in
the
performance
of
the
construction
contract
are
completely
consumed
in
the
activities
prior
to
the
ending
of
the
sales
tax
exemption
associated
with
the
applicable
unit
of
the
facility
pursuant
to
subsection
111.
(b)
This
subparagraph
is
repealed
July
1,
2051.
Sec.
3.
Section
423.3,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
111.
a.
(1)
The
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
or
of
services
furnished
to
a
nuclear
electric
generation
facility
directly
and
primarily
used
in
any
of
the
following
activities:
House
File
2757,
p.
3
(a)
Site
preparation.
(b)
Construction.
(c)
Reconstruction.
(d)
Expansion.
(e)
Replacement.
(f)
Alteration.
(g)
Repair.
(h)
Safe
storage.
(i)
Restarting
after
a
period
of
decommissioning
of
the
nuclear
electric
generation
facility.
(2)
For
a
nuclear
electric
generation
facility
that
is
undertaking
an
activity
described
in
subparagraph
(1),
subparagraph
division
(i),
the
exemption
applies
to
the
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
or
of
services
furnished
to
such
a
facility
occurring
on
or
after
January
1,
2026,
and
ends
when
the
nuclear
electric
generation
facility
begins
or
restarts
commercial
operation.
(3)
For
all
other
activities
that
do
not
apply
under
subparagraph
(2),
the
exemption
applies
to
the
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
or
of
services
furnished
to
a
nuclear
electric
generation
facility
when
permissible
in
the
agreement
under
paragraph
“c”
,
and
ends
when
the
nuclear
electric
generation
facility
begins
or
restarts
commercial
operation.
(4)
This
exemption
applies
to
the
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
or
of
services
furnished
to
a
nuclear
electric
generation
facility
that
are
directly
and
primarily
used
in
the
activities
described
in
this
paragraph
“a”
such
that
the
activity
results
in
a
new
nuclear
electric
generation
facility,
an
increased
nameplate
capacity
for
an
existing
nuclear
electric
generation
facility,
or
the
restart
of
a
decommissioned
nuclear
electric
generation
facility.
b.
(1)
During
the
period
the
nuclear
electric
generation
facility
is
receiving
the
exemption
under
this
subsection
not
to
exceed
four
years
of
the
exemption
period,
and
as
a
condition
of
receiving
the
exemption
under
this
subsection,
the
nuclear
electric
generation
facility
shall
make
an
annual
House
File
2757,
p.
4
contribution
to
the
nuclear
energy
workforce
fund
created
in
section
262.101,
in
the
amount
of
two
thousand
two
hundred
dollars
for
each
megawatt
of
nameplate
capacity
the
nuclear
electric
generation
facility
is
approved
to
produce
by
the
Iowa
utilities
commission.
The
contribution
shall
be
made
to
the
department
for
deposit
into
the
nuclear
energy
workforce
fund
created
in
section
262.101
during
the
exemption
period
the
annual
contribution
is
required.
(2)
The
nuclear
electric
generation
facility
shall
repay
the
aggregate
amount
of
the
sales
and
use
tax
exemptions
and
refunds
claimed
in
the
calendar
year
for
which
the
nuclear
electric
generation
facility
did
not
make
the
required
contribution.
Any
repayment
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
by
the
nuclear
electric
generation
facility,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
c.
The
nuclear
electric
generation
facility
shall
enter
into
an
agreement
with
the
economic
development
authority.
The
agreement
must
include
all
of
the
following
information:
(1)
The
person
entering
into
the
agreement
with
the
authority.
(2)
(a)
The
date
when
a
nuclear
electric
generation
facility
is
eligible
for
the
exemption
under
this
subsection.
(b)
For
a
nuclear
electric
generation
facility
that
is
undertaking
an
activity
described
in
paragraph
“a”
,
subparagraph
(1),
subparagraph
division
(i),
eligibility
for
the
exemption
as
described
in
this
subsection
begins
January
1,
2026.
(3)
The
date
on
which
commercial
operation
of
the
facility
is
expected
to
commence.
(4)
The
date
on
which
the
repayment
provision
in
paragraph
“f”
is
triggered.
(5)
Approval
of
the
nameplate
capacity
for
the
nuclear
electric
generation
facility
by
the
Iowa
utilities
commission.
(6)
The
due
date
for
the
contributions
required
by
paragraph
“b”
.
(7)
Proof
of
the
initial
contribution
required
by
paragraph
House
File
2757,
p.
5
“b”
.
d.
The
nuclear
electric
generation
facility
shall
file
an
annual
report
with
the
department
due
on
the
next
January
31
after
entering
the
agreement
under
paragraph
“c”
,
and
by
each
January
31
thereafter,
until
such
time
that
the
nuclear
electric
generation
facility
no
longer
qualifies
for
the
exemption.
The
report
shall
contain
all
of
the
following
information:
(1)
The
aggregate
sales
price
amount
of
exempt
tangible
personal
property
or
digital
products
sold
and
services
furnished
from
the
previous
calendar
year
under
this
subsection,
including
for
information
purposes
only,
tangible
personal
property,
specified
digital
products,
and
services
that
are
also
exempt
under
another
subsection
of
this
section.
(2)
Evidence
the
nuclear
electric
generation
facility
made
the
contribution
required
by
paragraph
“b”
.
(3)
Any
other
information
required
by
the
department.
e.
A
nuclear
electric
generation
facility
shall
notify
the
department
within
thirty
days
of
the
date
of
delivering
notification
to
the
applicable
regional
transmission
operators
that
commercial
operation
has
been
achieved.
f.
A
nuclear
electric
generation
facility
that
does
not
commence
or
restart
commercial
operation
within
twelve
and
one-half
years
of
the
later
of
the
issuance
of
the
certificate
of
public
convenience,
use,
and
necessity
under
chapter
476A
for
the
applicable
unit
of
the
facility
or
the
placement
of
the
first
safety-related
concrete
for
such
unit
shall
repay
the
entire
amount
of
the
sales
and
use
tax
exemptions
the
nuclear
electric
generation
facility
claimed
under
this
subsection
and
refunds
claimed
under
section
423.4,
subsection
1,
and
the
entire
amount
of
sales
and
use
tax
exemptions
that
contractors,
subcontractors,
and
builders
claimed
for
building
materials,
supplies,
equipment,
and
services
in
the
performance
of
a
written
construction
contract
with
the
nuclear
electric
generation
facility
under
subsection
80,
reduced
by
any
contribution
made
under
paragraph
“b”
of
this
subsection.
Any
repayment
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
by
the
nuclear
electric
generation
facility,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
House
File
2757,
p.
6
department
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
g.
The
department
shall
issue
guidance
within
thirty
days
of
the
effective
date
of
this
Act
regarding
acceptable
documentation
for
exemption
qualification
and
exemption
certificate
procedures.
h.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
administer
this
subsection.
i.
As
used
in
this
subsection:
(1)
“Commercial
operation”
means
the
date
on
which
a
nuclear
electric
generation
facility
delivers
notification
to
the
applicable
regional
transmission
operator
that
the
nuclear
electric
generation
facility
has
begun
operating.
(2)
“Nuclear
electric
generation
facility”
means
a
facility
commencing
or
restarting
commercial
operations
of
at
least
one
unit
of
the
facility
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.
A
“nuclear
electric
generation
facility”
includes
facilities
undergoing
restart
after
a
decommissioning
period
and
facilities
in
advanced
stages
of
development
or
obtaining
federal
licensing
from
the
United
States
nuclear
regulatory
commission.
A
“nuclear
electric
generation
facility”
includes
all
of
the
following:
(a)
Nuclear
reactors,
reactor
fuel
cores,
reactor
vessels,
steam
generators,
heat
exchangers,
turbine
systems,
control
rods,
instrumentation,
cooling
systems,
fuel
handling
and
storage
systems,
radiation
shielding,
radiation
sources
and
other
primary
nuclear
generation
components,
and
spent
fuel
storage.
(b)
Structures
and
buildings
housing
nuclear
generation
systems,
including
containment
buildings,
auxiliary
buildings,
cooling
towers,
water
intake
or
discharge
structures,
and
on-site
storage
facilities
directly
related
to
nuclear
operations.
(c)
Electrical
generation
and
transformation
equipment,
including
turbines,
generators,
switchgear,
transformers,
House
File
2757,
p.
7
inverters,
transmission
structures,
conductors,
substations,
and
associated
power
conditioning
and
control
equipment.
(d)
Equipment
and
systems
used
for
safety,
security,
radiation
monitoring,
emergency
power,
operator
training,
maintenance
training,
safety-related
equipment
storage,
and
warehousing.
(e)
Environmental
protection
required
for
operation
of
the
facility.
(f)
System
materials,
components,
equipment,
storage,
structures,
and
buildings
associated
with
integrated
systems
that
enhance
the
flexibility
of
the
system
in
delivering
energy
to
the
electrical
grid,
including
but
not
limited
to
the
following:
(i)
Systems
that
store
and
utilize
thermal
energy
or
electrical
energy
from
the
nuclear
electric
generating
facility
prior
to
delivering
energy
to
the
grid.
(ii)
Energy
storage
systems
that
utilize
a
transmission
system
interconnection
to
the
same
physical
substation
as
the
nuclear
electric
generating
facility.
(g)
Materials,
supplies,
and
components
permanently
incorporated
into
or
consumed
in
the
construction,
repair,
or
maintenance
of
a
nuclear
electric
generation
facility.
(h)
Digital
control
systems,
software,
cybersecurity,
infrastructure,
and
physical
security
systems
and
equipment
used
in
the
safe
and
compliant
operation
of
the
nuclear
electric
generation
facility.
(i)
Equipment,
materials,
systems,
and
services
required
to
restart
operations
at
a
previously
operational
nuclear
electric
generation
facility
that
has
ceased
commercial
operation,
including
but
not
limited
to
refurbishment,
modernization,
regulatory
compliance
upgrades,
and
relicensing
activities.
(3)
“Site
preparation”
means
the
same
as
“site
preparation
activities”
defined
in
subsection
95,
paragraph
“f”
.
j.
This
subsection
is
repealed
on
July
1,
2051.
Sec.
4.
Section
423.4,
subsection
1,
paragraph
a,
Code
2026,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(11)
(a)
A
nuclear
electric
generation
facility
as
defined
in
section
423.3,
subsection
111.
(b)
This
subparagraph
is
repealed
July
1,
2051.
House
File
2757,
p.
8
Sec.
5.
APPLICABILITY.
Except
as
otherwise
provided,
this
Act
applies
to
tangible
personal
property
or
specified
digital
projects
sold
to
or
of
services
furnished
to
a
nuclear
electric
generation
facility
when
permissible
under
section
423.3,
subsection
111,
paragraph
“c”,
if
enacted
by
this
Act.
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
Act
applies
retroactively
to
January
1,
2026,
for
tangible
personal
property
or
specified
digital
projects
sold
to
or
of
services
furnished
to
a
nuclear
electric
generation
facility
that
is
undertaking
an
activity
described
in
section
423.3,
subsection
111,
paragraph
“a”,
subparagraph
(1),
subparagraph
subdivision
(i),
if
enacted
by
this
Act.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2757,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor