Senate Amendment to House File 2757 H-8428 Amend House File 2757, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. NEW SECTION . 262.101 Nuclear energy workforce 5 fund —— appropriation —— report. 6 1. A nuclear energy workforce fund is established in the 7 office of the treasurer of state under the control of the state 8 board of regents. The fund consists of the contributions 9 made to the fund pursuant to section 423.3, subsection 111, 10 and any other appropriations made to the fund. Moneys in the 11 fund shall be separate from the general fund of the state 12 and shall not be considered part of the general fund of the 13 state. Moneys in the fund shall be used only as specified 14 in this section and shall be appropriated only for the uses 15 specified. Moneys in the fund are not subject to section 8.33 16 and shall not be transferred, used, obligated, appropriated, 17 or otherwise encumbered, except as provided in this section. 18 Notwithstanding section 12C.7, subsection 2, interest or 19 earnings on moneys deposited in the fund shall be credited to 20 the fund. 21 2. Moneys in the fund are appropriated to the board for the 22 purpose of establishing and maintaining programs and equipment 23 at one or more institutions of higher education governed by the 24 board that support nuclear energy workforce programs. 25 3. Beginning January 15, 2028, and each January 15 26 thereafter, the board shall submit a report to the general 27 assembly regarding the progress and implementation of 28 the nuclear energy workforce programs established at the 29 institutions governed by the board. The reports shall include 30 but are not limited to the numbers of students and educators 31 participating in the programs and the allocation of funds 32 appropriated for the programs. 33 Sec. 2. Section 423.3, subsection 80, paragraph c, Code 34 2026, is amended by adding the following new subparagraph: 35 -1- HF 2757.4316.S (1) 91 mb 1/ 8 #1.
NEW SUBPARAGRAPH . (3) (a) With regard to a written 1 contract with a designated exempt entity described in paragraph 2 “a” , subparagraph (1), that is a nuclear electric generation 3 facility, the sales price of building materials, supplies, 4 equipment, or services is exempt from tax by this subsection 5 only to the extent the building materials, supplies, equipment, 6 or services in the performance of the construction contract are 7 completely consumed in the activities prior to the ending of 8 the sales tax exemption associated with the applicable unit of 9 the facility pursuant to subsection 111. 10 (b) This subparagraph is repealed July 1, 2051. 11 Sec. 3. Section 423.3, Code 2026, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 111. a. (1) The sales price of tangible 14 personal property or specified digital products sold to or of 15 services furnished to a nuclear electric generation facility 16 directly and primarily used in any of the following activities: 17 (a) Site preparation. 18 (b) Construction. 19 (c) Reconstruction. 20 (d) Expansion. 21 (e) Replacement. 22 (f) Alteration. 23 (g) Repair. 24 (h) Safe storage. 25 (i) Restarting after a period of decommissioning of the 26 nuclear electric generation facility. 27 (2) For a nuclear electric generation facility that 28 is undertaking an activity described in subparagraph (1), 29 subparagraph division (i), the exemption applies to the sales 30 price of tangible personal property or specified digital 31 products sold to or of services furnished to such a facility 32 occurring on or after January 1, 2026, and ends when the 33 nuclear electric generation facility begins or restarts 34 commercial operation. 35 -2- HF 2757.4316.S (1) 91 mb 2/ 8
(3) For all other activities that do not apply under 1 subparagraph (2), the exemption applies to the sales price of 2 tangible personal property or specified digital products sold 3 to or of services furnished to a nuclear electric generation 4 facility when permissible in the agreement under paragraph “c” , 5 and ends when the nuclear electric generation facility begins 6 or restarts commercial operation. 7 (4) This exemption applies to the sales price of tangible 8 personal property or specified digital products sold to 9 or of services furnished to a nuclear electric generation 10 facility that are directly and primarily used in the activities 11 described in this paragraph “a” such that the activity results 12 in a new nuclear electric generation facility, an increased 13 nameplate capacity for an existing nuclear electric generation 14 facility, or the restart of a decommissioned nuclear electric 15 generation facility. 16 b. (1) During the period the nuclear electric generation 17 facility is receiving the exemption under this subsection 18 not to exceed four years of the exemption period, and as a 19 condition of receiving the exemption under this subsection, 20 the nuclear electric generation facility shall make an annual 21 contribution to the nuclear energy workforce fund created in 22 section 262.101, in the amount of two thousand two hundred 23 dollars for each megawatt of nameplate capacity the nuclear 24 electric generation facility is approved to produce by the Iowa 25 utilities commission. The contribution shall be made to the 26 department for deposit into the nuclear energy workforce fund 27 created in section 262.101 during the exemption period the 28 annual contribution is required. 29 (2) The nuclear electric generation facility shall repay 30 the aggregate amount of the sales and use tax exemptions and 31 refunds claimed in the calendar year for which the nuclear 32 electric generation facility did not make the required 33 contribution. Any repayment shall be considered a tax payment 34 due and payable to the department by the nuclear electric 35 -3- HF 2757.4316.S (1) 91 mb 3/ 8
generation facility, and the failure to make the repayment may 1 be treated by the department in the same manner as a failure to 2 pay the tax shown due, or required to be shown due, with the 3 filing of a return or deposit form. 4 c. The nuclear electric generation facility shall enter 5 into an agreement with the economic development authority. The 6 agreement must include all of the following information: 7 (1) The person entering into the agreement with the 8 authority. 9 (2) (a) The date when a nuclear electric generation 10 facility is eligible for the exemption under this subsection. 11 (b) For a nuclear electric generation facility that 12 is undertaking an activity described in paragraph “a” , 13 subparagraph (1), subparagraph division (i), eligibility for 14 the exemption as described in this subsection begins January 15 1, 2026. 16 (3) The date on which commercial operation of the facility 17 is expected to commence. 18 (4) The date on which the repayment provision in paragraph 19 “f” is triggered. 20 (5) Approval of the nameplate capacity for the nuclear 21 electric generation facility by the Iowa utilities commission. 22 (6) The due date for the contributions required by paragraph 23 “b” . 24 (7) Proof of the initial contribution required by paragraph 25 “b” . 26 d. The nuclear electric generation facility shall file 27 an annual report with the department due on the next January 28 31 after entering the agreement under paragraph “c” , and by 29 each January 31 thereafter, until such time that the nuclear 30 electric generation facility no longer qualifies for the 31 exemption. The report shall contain all of the following 32 information: 33 (1) The aggregate sales price amount of exempt tangible 34 personal property or digital products sold and services 35 -4- HF 2757.4316.S (1) 91 mb 4/ 8
furnished from the previous calendar year under this 1 subsection, including for information purposes only, tangible 2 personal property, specified digital products, and services 3 that are also exempt under another subsection of this section. 4 (2) Evidence the nuclear electric generation facility made 5 the contribution required by paragraph “b” . 6 (3) Any other information required by the department. 7 e. A nuclear electric generation facility shall notify 8 the department within thirty days of the date of delivering 9 notification to the applicable regional transmission operators 10 that commercial operation has been achieved. 11 f. A nuclear electric generation facility that does not 12 commence or restart commercial operation within twelve and 13 one-half years of the later of the issuance of the certificate 14 of public convenience, use, and necessity under chapter 476A 15 for the applicable unit of the facility or the placement 16 of the first safety-related concrete for such unit shall 17 repay the entire amount of the sales and use tax exemptions 18 the nuclear electric generation facility claimed under this 19 subsection and refunds claimed under section 423.4, subsection 20 1, and the entire amount of sales and use tax exemptions 21 that contractors, subcontractors, and builders claimed for 22 building materials, supplies, equipment, and services in the 23 performance of a written construction contract with the nuclear 24 electric generation facility under subsection 80, reduced by 25 any contribution made under paragraph “b” of this subsection. 26 Any repayment shall be considered a tax payment due and payable 27 to the department by the nuclear electric generation facility, 28 and the failure to make the repayment may be treated by the 29 department in the same manner as a failure to pay the tax shown 30 due, or required to be shown due, with the filing of a return or 31 deposit form. 32 g. The department shall issue guidance within thirty 33 days of the effective date of this Act regarding acceptable 34 documentation for exemption qualification and exemption 35 -5- HF 2757.4316.S (1) 91 mb 5/ 8
certificate procedures. 1 h. The department may adopt rules pursuant to chapter 17A 2 to administer this subsection. 3 i. As used in this subsection: 4 (1) “Commercial operation” means the date on which a nuclear 5 electric generation facility delivers notification to the 6 applicable regional transmission operator that the nuclear 7 electric generation facility has begun operating. 8 (2) “Nuclear electric generation facility” means a facility 9 commencing or restarting commercial operations of at least 10 one unit of the facility on or after January 1, 2028, that is 11 located in this state, uses nuclear fission, fusion, or other 12 nuclear processes to generate electricity for sale or for use 13 in the transmission or distribution grid and is licensed by 14 the federal nuclear regulatory commission. A “nuclear electric 15 generation facility” includes facilities undergoing restart 16 after a decommissioning period and facilities in advanced 17 stages of development or obtaining federal licensing from 18 the United States nuclear regulatory commission. A “nuclear 19 electric generation facility” includes all of the following: 20 (a) Nuclear reactors, reactor fuel cores, reactor vessels, 21 steam generators, heat exchangers, turbine systems, control 22 rods, instrumentation, cooling systems, fuel handling and 23 storage systems, radiation shielding, radiation sources and 24 other primary nuclear generation components, and spent fuel 25 storage. 26 (b) Structures and buildings housing nuclear generation 27 systems, including containment buildings, auxiliary buildings, 28 cooling towers, water intake or discharge structures, and 29 on-site storage facilities directly related to nuclear 30 operations. 31 (c) Electrical generation and transformation equipment, 32 including turbines, generators, switchgear, transformers, 33 inverters, transmission structures, conductors, substations, 34 and associated power conditioning and control equipment. 35 -6- HF 2757.4316.S (1) 91 mb 6/ 8
(d) Equipment and systems used for safety, security, 1 radiation monitoring, emergency power, operator training, 2 maintenance training, safety-related equipment storage, and 3 warehousing. 4 (e) Environmental protection required for operation of the 5 facility. 6 (f) System materials, components, equipment, storage, 7 structures, and buildings associated with integrated systems 8 that enhance the flexibility of the system in delivering energy 9 to the electrical grid, including but not limited to the 10 following: 11 (i) Systems that store and utilize thermal energy or 12 electrical energy from the nuclear electric generating facility 13 prior to delivering energy to the grid. 14 (ii) Energy storage systems that utilize a transmission 15 system interconnection to the same physical substation as the 16 nuclear electric generating facility. 17 (g) Materials, supplies, and components permanently 18 incorporated into or consumed in the construction, repair, or 19 maintenance of a nuclear electric generation facility. 20 (h) Digital control systems, software, cybersecurity, 21 infrastructure, and physical security systems and equipment 22 used in the safe and compliant operation of the nuclear 23 electric generation facility. 24 (i) Equipment, materials, systems, and services required to 25 restart operations at a previously operational nuclear electric 26 generation facility that has ceased commercial operation, 27 including but not limited to refurbishment, modernization, 28 regulatory compliance upgrades, and relicensing activities. 29 (3) “Site preparation” means the same as “site preparation 30 activities” defined in subsection 95, paragraph “f” . 31 j. This subsection is repealed on July 1, 2051. 32 Sec. 4. Section 423.4, subsection 1, paragraph a, Code 2026, 33 is amended by adding the following new subparagraph: 34 NEW SUBPARAGRAPH . (11) (a) A nuclear electric generation 35 -7- HF 2757.4316.S (1) 91 mb 7/ 8
facility as defined in section 423.3, subsection 111. 1 (b) This subparagraph is repealed July 1, 2051. 2 Sec. 5. APPLICABILITY. Except as otherwise provided, this 3 Act applies to tangible personal property or specified digital 4 projects sold to or of services furnished to a nuclear electric 5 generation facility when permissible under section 423.3, 6 subsection 111, paragraph “c”, if enacted by this Act. 7 Sec. 6. RETROACTIVE APPLICABILITY. This Act applies 8 retroactively to January 1, 2026, for tangible personal 9 property or specified digital projects sold to or of services 10 furnished to a nuclear electric generation facility that is 11 undertaking an activity described in section 423.3, subsection 12 111, paragraph “a”, subparagraph (1), subparagraph subdivision 13 (i), if enacted by this Act. > 14 2. Title page, by striking lines 1 through 4 and inserting 15 < An Act relating to nuclear electric generation facilities 16 by creating sales and use tax exemptions and refunds, making 17 appropriations to the state board of regents for establishing 18 and maintaining a nuclear energy workforce, making penalties 19 applicable, and including applicability and retroactive 20 applicability provisions. > 21 -8- HF 2757.4316.S (1) 91 mb 8/ 8