Read the full stored bill text
Senate
File
2498
-
Introduced
SENATE
FILE
2498
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3181)
A
BILL
FOR
An
Act
relating
to
nuclear
electric
generation
facilities
1
by
creating
sales
and
use
tax
exemptions
and
refunds,
2
making
appropriations
to
the
state
board
of
regents
for
3
establishing
and
maintaining
a
nuclear
energy
workforce,
and
4
providing
penalties.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
NEW
SECTION
.
262.101
Nuclear
energy
workforce
1
fund
——
appropriation
——
report.
2
1.
A
nuclear
energy
workforce
fund
is
established
in
the
3
office
of
the
treasurer
of
state
under
the
control
of
the
state
4
board
of
regents.
The
fund
consists
of
the
contributions
5
made
to
the
fund
pursuant
to
section
423.3,
subsection
111,
6
and
any
other
appropriations
made
to
the
fund.
Moneys
in
the
7
fund
shall
be
separate
from
the
general
fund
of
the
state
8
and
shall
not
be
considered
part
of
the
general
fund
of
the
9
state.
Moneys
in
the
fund
shall
be
used
only
as
specified
10
in
this
section
and
shall
be
appropriated
only
for
the
uses
11
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
12
and
shall
not
be
transferred,
used,
obligated,
appropriated,
13
or
otherwise
encumbered,
except
as
provided
in
this
section.
14
Notwithstanding
section
12C.7,
subsection
2,
interest
or
15
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
16
the
fund.
17
2.
Moneys
in
the
fund
are
appropriated
to
the
board
for
the
18
purpose
of
establishing
and
maintaining
programs
and
equipment
19
at
one
or
more
institutions
of
higher
education
governed
by
the
20
board
that
support
nuclear
energy
workforce
programs.
21
3.
Beginning
January
15,
2028,
and
each
January
15
22
thereafter,
the
board
shall
submit
a
report
to
the
general
23
assembly
regarding
the
progress
and
implementation
of
24
the
nuclear
energy
workforce
programs
established
at
the
25
institutions
governed
by
the
board.
The
reports
shall
include
26
but
are
not
limited
to
the
numbers
of
students
and
educators
27
participating
in
the
programs
and
the
allocation
of
funds
28
appropriated
for
the
programs.
29
Sec.
2.
Section
423.3,
Code
2026,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
111.
a.
(1)
To
the
extent
permissible
in
32
the
agreement
under
paragraph
“d”
,
the
sales
price
of
tangible
33
personal
property
or
specified
digital
products
sold,
or
of
34
services
furnished
to
a
nuclear
electric
generation
facility.
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(2)
The
tangible
personal
property,
specified
digital
1
products,
and
services
furnished
shall
be
directly
and
2
primarily
used
before,
during,
or
after
the
site
preparation,
3
construction,
reconstruction,
replacement,
alteration,
repair,
4
safe
storage,
maintenance,
or
restarting
after
decommissioning
5
of
the
nuclear
electric
generation
facility.
6
b.
This
exemption
does
not
apply
to
motor
vehicles
subject
7
to
registration
under
chapter
321.
8
c.
This
subsection
shall
not
be
construed
to
limit
any
other
9
exemptions
applicable
under
this
chapter.
10
d.
(1)
As
a
condition
of
receiving
the
exemption
under
11
this
subsection,
and
prior
to
being
eligible
to
receive
the
12
exemption,
the
nuclear
electric
generation
facility
shall
13
enter
into
an
agreement
with
the
state
board
of
regents
and
14
the
economic
development
authority
that
provides
a
minimum
15
contribution
for
establishing
and
maintaining
programs
and
16
equipment
at
one
or
more
institutions
of
higher
education
17
governed
by
the
board
that
support
a
nuclear
energy
workforce.
18
The
agreement
shall,
at
a
minimum,
require
the
nuclear
electric
19
generation
facility
to
annually
contribute
at
least
fifteen
20
percent
of
the
aggregate
value
of
the
sales
and
use
tax
21
exemption
and
refund
disclosed
in
the
annual
report
to
the
22
department
pursuant
to
paragraph
“e”
for
the
previous
calendar
23
year.
The
contribution
shall
be
made
to
the
department
and
24
deposited
into
the
nuclear
energy
workforce
fund
created
in
25
section
262.101.
26
(2)
The
agreement
shall
establish
the
date
when
eligibility
27
for
the
exemption
begins
including
whether
and
to
what
extent
28
the
exemption
applies
to
any
tangible
personal
property
or
29
specified
digital
products
sold
or
to
services
furnished
prior
30
to
the
agreement
date.
31
e.
(1)
The
nuclear
electric
generation
facility
shall
32
register
with
the
department.
The
registration
must
include
33
all
of
the
following:
34
(a)
An
executed
copy
of
the
agreement
in
paragraph
“d”
.
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(b)
Any
information
the
department
requires.
1
(2)
To
maintain
its
registration,
the
nuclear
electric
2
generation
facility
shall
file
an
annual
report
with
the
3
department
beginning
January
31,
2027,
and
by
each
January
31
4
thereafter,
that
contains
all
of
the
following
information:
5
(a)
The
aggregate
sales
price
amount
of
exempt
tangible
6
personal
property
or
digital
products
sold
and
services
7
furnished
from
the
previous
calendar
year
under
this
8
subsection,
including
tangible
personal
property,
specified
9
digital
products,
and
services
that
are
also
exempt
under
10
another
subsection
of
this
section.
11
(b)
The
aggregate
sales
price
amount
of
building
materials,
12
supplies,
equipment,
and
services
subject
to
a
refund
claim
the
13
department
approved
during
the
previous
calendar
year
under
14
section
423.4,
subsection
12.
15
(c)
Evidence
the
nuclear
electric
generation
facility
made
16
the
contribution
required
by
the
agreement
in
paragraph
“d”
.
17
(d)
Any
other
information
required
by
the
department.
18
(3)
The
nuclear
electric
generation
facility
shall
repay
19
the
aggregate
amount
of
the
sales
and
use
tax
exemptions
and
20
refunds
claimed
in
the
calendar
year
for
which
the
nuclear
21
electric
generation
facility
did
not
make
the
required
22
contribution.
Any
repayment
shall
be
considered
a
tax
payment
23
due
and
payable
to
the
department
by
the
nuclear
electric
24
generation
facility,
and
the
failure
to
make
the
repayment
may
25
be
treated
by
the
department
in
the
same
manner
as
a
failure
to
26
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
27
filing
of
a
return
or
deposit
form.
28
(4)
A
nuclear
electric
generation
facility
that
is
not
29
registered
with
the
department
is
not
eligible
to
receive
an
30
exemption
under
this
subsection
or
a
refund
under
section
31
423.4,
subsection
12.
32
f.
The
department
may
adopt
rules
pursuant
to
chapter
17A
33
to
administer
this
subsection.
34
g.
For
purposes
of
this
subsection,
“nuclear
electric
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generation
facility”
means
a
facility
located
in
this
state
that
1
uses
nuclear
fission,
fusion,
or
other
nuclear
processes
to
2
generate
electricity
for
sale
or
for
use
in
the
transmission
3
or
distribution
grid
and
is
licensed
by
the
federal
nuclear
4
regulatory
commission.
A
“nuclear
electric
generation
facility”
5
includes
facilities
undergoing
restart
after
a
decommissioning
6
period
and
facilities
in
advanced
stages
of
development
or
7
obtaining
federal
licensing
from
the
federal
nuclear
regulatory
8
commission.
A
“nuclear
electric
generation
facility”
includes
9
all
of
the
following:
10
(1)
Nuclear
reactors,
reactor
fuel
cores,
reactor
vessels,
11
steam
generators,
heat
exchangers,
turbine
systems,
control
12
rods,
instrumentation,
cooling
systems,
fuel
handling
and
13
storage
systems,
radiation
shielding,
radiation
sources
and
14
other
primary
nuclear
generation
components,
and
spent
fuel
15
storage.
16
(2)
Structures
and
buildings
housing
nuclear
generation
17
systems,
including
containment
buildings,
auxiliary
buildings,
18
cooling
towers,
water
intake
or
discharge
structures,
and
19
on-site
storage
facilities
directly
related
to
nuclear
20
operations.
21
(3)
Electrical
generation
and
transformation
equipment,
22
including
turbines,
generators,
switchgear,
transformers,
23
inverters,
transmission
structures,
conductors,
substations,
24
and
associated
power
conditioning
and
control
equipment.
25
(4)
Equipment
and
systems
used
for
safety,
security,
26
radiation
monitoring,
emergency
power,
operator
training,
27
maintenance
training,
safety-related
equipment
storage,
and
28
warehousing.
29
(5)
Environmental
protection
required
for
operation
of
the
30
facility.
31
(6)
System
materials,
components,
equipment,
storage,
32
structures,
and
buildings
associated
with
integrated
systems
33
that
enhance
the
flexibility
of
the
system
in
delivering
energy
34
to
the
electrical
grid,
including
but
not
limited
to
the
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following:
1
(a)
Systems
that
store
and
utilize
thermal
energy
or
2
electrical
energy
from
the
nuclear
electric
generation
facility
3
prior
to
delivering
energy
to
the
grid.
4
(b)
Energy
storage
systems
that
utilize
a
transmission
5
system
interconnection
to
the
same
physical
substation
as
the
6
nuclear
electric
generation
facility.
7
(7)
Materials,
supplies,
and
components
permanently
8
incorporated
into
or
consumed
in
the
construction,
repair,
or
9
maintenance
of
a
nuclear
electric
generation
facility.
10
(8)
Digital
control
systems,
software,
cybersecurity,
11
infrastructure,
and
physical
security
systems
and
equipment
12
used
in
the
safe
and
compliant
operation
of
the
nuclear
13
electric
generation
facility.
14
(9)
Equipment,
materials,
systems,
and
services
required
to
15
restart
operations
at
a
previously
operational
nuclear
electric
16
generation
facility
that
has
ceased
commercial
operation,
17
including
but
not
limited
to
refurbishment,
modernization.
18
regulatory
compliance
upgrades,
and
relicensing
activities.
19
Sec.
3.
Section
423.4,
Code
2026,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
12.
a.
A
nuclear
electric
generation
22
facility,
as
defined
in
section
423.3,
subsection
111,
may
23
apply
to
the
department
for
the
refund
of
sales
or
use
tax
upon
24
the
sales
price
of
all
sales
of
building
materials,
supplies,
25
equipment,
or
from
service
furnished
to
a
contractor,
used
in
26
the
performance
of
a
written
contract
with
the
nuclear
electric
27
generation
facility
if
all
of
the
following
apply:
28
(1)
The
building
materials,
supplies,
equipment,
or
29
services
are
completely
consumed
in
the
performance
of
a
30
construction
project
with
the
nuclear
electric
generation
31
facility.
32
(2)
The
property
that
is
the
subject
of
the
construction
33
project
becomes
public
property
or
the
property
of
the
nuclear
34
electric
generation
facility.
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b.
A
contractor
shall
state
under
oath,
on
forms
provided
1
by
the
department,
the
amount
of
such
sales
and
building
2
materials,
supplies,
or
equipment,
or
services
furnished
and
3
used
in
the
performance
of
such
contract,
and
upon
which
sales
4
or
use
tax
has
been
paid,
and
shall
file
such
forms
with
the
5
nuclear
electric
generation
facility
which
has
made
any
written
6
contract
for
performance
by
the
contractor.
The
forms
shall
be
7
filed
by
the
contractor
with
the
nuclear
electric
generation
8
facility
before
final
settlement
is
made.
9
c.
A
nuclear
electric
generation
facility
shall,
not
more
10
than
one
year
after
the
final
settlement
has
been
made,
apply
11
to
the
department
for
any
refund
of
the
amount
of
the
sales
or
12
use
tax
which
shall
have
been
paid
upon
any
building
materials,
13
supplies,
equipment,
or
services
furnished,
the
application
14
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
15
department,
and
the
department
shall
forthwith
audit
the
claim
16
and,
if
approved,
issue
a
warrant
to
the
nuclear
electric
17
generation
facility
in
the
amount
of
the
sales
or
use
tax
which
18
has
been
paid
to
the
state
of
Iowa
under
the
contract.
The
19
nuclear
electric
generation
facility
shall
be
registered
with
20
the
department
as
required
under
section
423.3,
subsection
111,
21
at
the
time
the
nuclear
electric
generation
facility
applies
22
for
refund
under
this
subsection.
23
d.
Refunds
authorized
under
this
subsection
shall
accrue
24
interest
in
accordance
with
section
421.60,
subsection
2,
25
paragraph
“e”
.
26
e.
Any
contractor
who
willfully
makes
a
false
report
of
27
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
28
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
29
payment
of
the
tax
and
any
applicable
penalty
and
interest.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
makes
certain
sales
and
use
tax
exemptions
34
relating
to
nuclear
electric
generation
facilities
contingent
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upon
making
contributions
to
institutions
of
higher
education
1
(regents
institution)
governed
by
the
state
board
of
regents
2
(board).
3
NUCLEAR
ELECTRIC
GENERATION
FACILITY
——
EXEMPTION.
To
4
the
extent
permissible
under
an
agreement
required
by
5
the
bill,
tangible
personal
property
or
specified
digital
6
products
sold
and
services
furnished
are
exempted
from
7
the
state
sales
and
use
tax
(exemption)
before,
during,
or
8
after
the
site
preparation,
construction,
reconstruction,
9
replacement,
alteration,
repair,
safe
storage,
maintenance,
10
or
the
restarting
after
decommissioning
of
a
nuclear
electric
11
generation
facility.
The
tangible
personal
property,
specified
12
digital
products,
and
services
exempted
are
required
to
be
13
directly
and
primarily
used
for
these
purposes.
14
The
bill
defines
“nuclear
electric
generation
facility”
15
(facility)
to
mean
a
facility
located
in
this
state
that
16
uses
nuclear
fission,
fusion,
or
other
nuclear
processes
to
17
generate
electricity
for
sale
or
for
use
in
the
transmission
18
or
distribution
grid
and
is
licensed
by
the
federal
nuclear
19
regulatory
commission.
The
definition
of
facility
in
the
bill
20
is
comprehensive
and
includes
but
is
not
limited
to
nuclear
21
reactors,
storage
facilities,
equipment,
electrical
generation,
22
and
other
structures.
23
AGREEMENT
BY
FACILITY.
As
a
condition
of
receiving
the
24
exemption
created
in
the
bill,
a
facility
is
required
to
enter
25
into
an
agreement
with
the
board
and
the
economic
development
26
authority
(authority)
that
requires
the
facility
to
make
a
27
minimum
contribution
for
establishing
and
maintaining
programs
28
and
equipment
at
one
or
more
regents
institutions
governed
29
by
the
board
that
support
nuclear
energy
workforce
programs.
30
The
agreement
shall,
at
a
minimum,
require
the
facility
to
31
contribute
at
least
15
percent
of
the
aggregate
value
of
32
the
exemption
received
pursuant
to
the
bill
for
the
purpose
33
of
establishing
and
maintaining
programs
and
equipment
at
a
34
regents
institution
that
supports
nuclear
energy
workforce
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S.F.
2498
programs.
1
The
agreement
with
the
authority
shall
establish
the
date
2
the
exemption
begins,
including
whether
and
to
what
extent
3
the
exemption
applies
to
any
tangible
personal
property
or
4
specified
digital
products
sold,
or
services
furnished
prior
5
to
the
agreement
date.
6
Beginning
January
15,
2028,
and
each
January
15
thereafter,
7
the
bill
requires
the
board
to
submit
a
report
to
the
general
8
assembly
regarding
the
progress
and
implementation
of
the
9
nuclear
energy
workforce
programs.
10
REPORTING
BY
FACILITY.
The
bill
requires
a
facility
to
11
register
with
the
department.
Beginning
January
31,
2027,
and
12
each
January
31
thereafter,
a
facility
receiving
an
exemption
13
is
required
to
file
an
annual
report
with
the
department
of
14
revenue
(DOR).
The
annual
report
shall
provide
the
aggregate
15
sales
price
amount
of
tangible
personal
property,
specified
16
digital
products,
and
services
that
received
an
exemption
in
17
the
previous
calendar
year.
18
The
bill
requires
DOR
to
calculate
the
aggregate
value
of
19
the
exemption
based
upon
the
aggregate
sales
price
amounts
20
disclosed
in
the
annual
report,
and
provide
the
aggregate
value
21
of
the
exemption
to
the
authority,
for
purposes
of
calculating
22
the
15
percent
contribution
for
establishing
and
maintaining
23
programs
and
equipment
at
a
regents
institution
that
supports
24
nuclear
energy
workforce
programs.
25
SALES
AND
USE
TAX
REFUNDS.
The
bill
permits
a
facility
to
26
apply
to
DOR
for
the
refund
of
sales
or
tax
upon
the
sales
27
price
of
all
sales
of
building
materials,
supplies,
equipment,
28
or
from
services
furnished
to
a
contractor,
used
in
the
29
performance
of
a
written
contract
with
the
facility,
if
certain
30
circumstances
apply.
Any
contractor
who
willfully
makes
a
31
false
report
of
taxes
paid
for
purposes
of
obtaining
a
sales
or
32
use
tax
refund
under
the
bill
commits
a
simple
misdemeanor.
33
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