House Study Bill 767 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act creating sales and use tax exemptions relating to 1 commencing or restarting nuclear electric generation 2 facilities, and including retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6140YC (3) 91 jm/jh

H.F. _____ Section 1. Section 423.3, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 111. a. The sales price of tangible 3 personal property or specified digital products sold or 4 services furnished before, during, or after the site 5 preparation, construction, reconstruction, replacement, 6 alteration, repair, safe storage, maintenance, or restarting 7 after decommissioning of a nuclear electric generation 8 facility. 9 b. This exemption does not apply to the following: 10 (1) Motor vehicles subject to registration under chapter 11 321. 12 (2) Tangible personal property or specified digital 13 products sold, or services furnished where the purchasing agent 14 of the nuclear electric generation facility fails to provide 15 the retailer with an exemption certificate. 16 (3) Tangible personal property or specified digital 17 products sold, or services furnished prior to January 1, 2025. 18 c. This subsection shall not be construed to limit any other 19 exemptions applicable under this chapter. 20 d. The department shall issue guidance within ninety 21 days of the effective date of this Act regarding acceptable 22 documentation for exemption qualification and exemption 23 certificate procedures. 24 e. The department may adopt rules pursuant to chapter 17A 25 to administer this subsection. 26 f. For purposes of this subsection, “nuclear electric 27 generation facility” means a facility commencing or restarting 28 commercial operations on or after January 1, 2028, that is 29 located in this state, uses nuclear fission, fusion, or other 30 nuclear processes to generate electricity for sale or for use 31 in the transmission or distribution grid and is licensed by 32 the federal nuclear regulatory commission. A “nuclear electric 33 generation facility” includes facilities undergoing restart 34 after a decommissioning period and facilities in advanced 35 -1- LSB 6140YC (3) 91 jm/jh 1/ 4

H.F. _____ stages of development or obtaining federal licensing from 1 the United States nuclear regulatory commission. A “nuclear 2 electric generation facility” includes all of the following: 3 (1) Nuclear reactors, reactor fuel cores, reactor vessels, 4 steam generators, heat exchangers, turbine systems, control 5 rods, instrumentation, cooling systems, fuel handling and 6 storage systems, radiation shielding, radiation sources and 7 other primary nuclear generation components, and spent fuel 8 storage. 9 (2) Structures and buildings housing nuclear generation 10 systems, including containment buildings, auxiliary buildings, 11 cooling towers, water intake or discharge structures, and 12 on-site storage facilities directly related to nuclear 13 operations. 14 (3) Electrical generation and transformation equipment, 15 including turbines, generators, switchgear, transformers, 16 inverters, transmission structures, conductors, substations, 17 and associated power conditioning and control equipment. 18 (4) Equipment and systems used for safety, security, 19 radiation monitoring, emergency power, operator training, 20 maintenance training, safety-related equipment storage, and 21 warehousing. 22 (5) Environmental protection required for operation of the 23 facility. 24 (6) System materials, components, equipment, storage, 25 structures, and buildings associated with integrated systems 26 that enhance the flexibility of the system in delivering energy 27 to the electrical grid, including but not limited to the 28 following: 29 (a) Systems that store and utilize thermal energy or 30 electrical energy from the nuclear electric generating facility 31 prior to delivering energy to the grid. 32 (b) Energy storage systems that utilize a transmission 33 system interconnection to the same physical substation as the 34 nuclear electric generating facility. 35 -2- LSB 6140YC (3) 91 jm/jh 2/ 4

H.F. _____ (7) Materials, supplies, and components permanently 1 incorporated into or consumed in the construction, repair, or 2 maintenance of a nuclear electric generation facility. 3 (8) Digital control systems, software, cybersecurity, 4 infrastructure, and physical security systems and equipment 5 used in the safe and compliant operation of the nuclear 6 electric generation facility. 7 (9) Equipment, materials, systems, and services required to 8 restart operations at a previously operational nuclear electric 9 generation facility that has ceased commercial operation, 10 including but not limited to refurbishment, modernization, 11 regulatory compliance upgrades, and relicensing activities. 12 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 13 retroactively to January 1, 2025, for qualifying tangible 14 personal property or specified digital products sold, or 15 services furnished on or after that date. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill creates sales and use tax exemptions relating 20 to commencing or restarting nuclear electric generation 21 facilities. 22 The bill exempts tangible personal property or specified 23 digital products sold and services furnished are exempted 24 from the state sales and use tax (exemption) before, during, 25 or after the site preparation, construction, reconstruction, 26 replacement, alteration, repair, safe storage, maintenance, 27 or the restarting after decommissioning of a nuclear electric 28 generation facility. 29 The bill defines “nuclear electric generation facility” 30 (facility) to mean a facility commencing or restarting on 31 or after January 1, 2028, that is located in this state, 32 uses nuclear fission, fusion, or other nuclear processes to 33 generate electricity for sale or for use in the transmission 34 or distribution grid and is licensed by the federal nuclear 35 -3- LSB 6140YC (3) 91 jm/jh 3/ 4

H.F. _____ regulatory commission. 1 The exemption does not apply to the following: (1) motor 2 vehicles registered under Code chapter 321, (2) tangible 3 personal property or specified digital products sold, or 4 services furnished, without the facility providing its 5 exemption certificate, and (3) tangible personal property or 6 specified digital products sold, or services furnished, prior 7 to January 1, 2025. 8 The definition of facility in the bill is comprehensive 9 and includes but is not limited to nuclear reactors, storage 10 facilities, equipment, electrical generation, and other 11 structures. 12 The bill requires the department of revenue to issue 13 guidance about acceptable documentation required to obtain 14 the exemption and exemption certificate procedures. The bill 15 also specifies the department of revenue may adopt rules to 16 administer the bill. 17 The bill applies retroactively to January 1, 2025, for 18 qualifying tangible personal property or specified digital 19 products sold, or services furnished on or after that date. 20 -4- LSB 6140YC (3) 91 jm/jh 4/ 4