Read the full stored bill text
Kim Reynolds
governor
Office of the Governor Chris Cournoyer
LT GOVERNOR
June 01, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 2757, an Act creating sales and use tax exemptions and refunds relating to
commencing or restarting nuclear electric generation facilities, and including retroactive
applicability provisions.
The above House File is hereby approved on this date.
Kim Reynol/s
Governor onlowa
cc: Secretaiy of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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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
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
xs . « b .
(7) Proof of the initial contribution required by paragraph
House File 2757, p. 5
nn , xz 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 GRASSLBy AMY SINCLAIR
Speaker oj/ the House 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 ci pf the House
Approved 2026
KIM REYNOLDS
Governor
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