House File 2757 - Reprinted HOUSE FILE 2757 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 767) (As Amended and Passed by the House April 15, 2026 ) A BILL FOR An Act creating sales and use tax exemptions and refunds 1 relating to commencing or restarting nuclear electric 2 generation facilities, and including retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2757 (2) 91 jm/jh/md

H.F. 2757 Section 1. Section 423.3, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 111. a. (1) The sales price of tangible 3 personal property or specified digital products sold to or of 4 services furnished to a nuclear electric generation facility on 5 or after January 1, 2026. 6 (2) The tangible personal property, specified digital 7 products, and services furnished shall be directly and 8 primarily used before, during, or after the site preparation, 9 construction, reconstruction, replacement, alteration, repair, 10 safe storage, maintenance, or restarting after decommissioning 11 of the nuclear electric generation facility. 12 b. The exemption under this section does not apply to motor 13 vehicles subject to registration under chapter 321. 14 c. This subsection shall not be construed to limit any other 15 exemptions applicable under this chapter. 16 d. The department shall issue guidance within ninety 17 days of the effective date of this Act regarding acceptable 18 documentation for exemption qualification and exemption 19 certificate procedures. 20 e. The department may adopt rules pursuant to chapter 17A 21 to administer this subsection. 22 f. A nuclear electric generation facility that does not 23 commence or restart commercial operation within twelve and 24 one-half years of the later of the issuance of the certificate 25 of public convenience, use, and necessity under chapter 476A 26 for the applicable unit of the facility or the placement 27 of the first safety-related concrete for such unit shall 28 repay the entire amount of the sales and use tax exemptions 29 the nuclear electric generation facility claimed under this 30 subsection and refunds claimed under section 423.4, subsection 31 1, and the entire amount of sales and use tax exemptions that 32 contractors, subcontractors, and builders claimed for building 33 materials, supplies, equipment, and services in the performance 34 of a written construction contract with the nuclear electric 35 -1- HF 2757 (2) 91 jm/jh/md 1/ 4

H.F. 2757 generation facility under subsection 80. Any repayment shall 1 be considered a tax payment due and payable to the department 2 by the nuclear electric generation facility, and the failure to 3 make the repayment may be treated by the department in the same 4 manner as a failure to pay the tax shown due, or required to be 5 shown due, with the filing of a return or deposit form. 6 g. (1) A nuclear electric generation facility is eligible 7 to receive an exemption under this subsection until the earlier 8 of one year from the date of delivering notification to the 9 applicable regional transmission operators that commercial 10 operation has been achieved or June 30, 2051. 11 (2) Within thirty days of delivering notification in 12 subparagraph (1), the nuclear electric generation facility 13 shall notify the department of the date notification was 14 delivered under subparagraph (1) in a manner prescribed by the 15 director. 16 h. As used in this subsection: 17 (1) “Nuclear electric generation facility” means a facility 18 commencing or restarting commercial operations of at least 19 one unit of the facility on or after January 1, 2028, that is 20 located in this state, uses nuclear fission, fusion, or other 21 nuclear processes to generate electricity for sale or for use 22 in the transmission or distribution grid and is licensed by 23 the federal nuclear regulatory commission. A “nuclear electric 24 generation facility” includes facilities undergoing restart 25 after a decommissioning period and facilities in advanced 26 stages of development or obtaining federal licensing from 27 the United States nuclear regulatory commission. A “nuclear 28 electric generation facility” includes all of the following: 29 (a) Nuclear reactors, reactor fuel cores, reactor vessels, 30 steam generators, heat exchangers, turbine systems, control 31 rods, instrumentation, cooling systems, fuel handling and 32 storage systems, radiation shielding, radiation sources and 33 other primary nuclear generation components, and spent fuel 34 storage. 35 -2- HF 2757 (2) 91 jm/jh/md 2/ 4

H.F. 2757 (b) Structures and buildings housing nuclear generation 1 systems, including containment buildings, auxiliary buildings, 2 cooling towers, water intake or discharge structures, and 3 on-site storage facilities directly related to nuclear 4 operations. 5 (c) Electrical generation and transformation equipment, 6 including turbines, generators, switchgear, transformers, 7 inverters, transmission structures, conductors, substations, 8 and associated power conditioning and control equipment. 9 (d) Equipment and systems used for safety, security, 10 radiation monitoring, emergency power, operator training, 11 maintenance training, safety-related equipment storage, and 12 warehousing. 13 (e) Environmental protection required for operation of the 14 facility. 15 (f) System materials, components, equipment, storage, 16 structures, and buildings associated with integrated systems 17 that enhance the flexibility of the system in delivering energy 18 to the electrical grid, including but not limited to the 19 following: 20 (i) Systems that store and utilize thermal energy or 21 electrical energy from the nuclear electric generating facility 22 prior to delivering energy to the grid. 23 (ii) Energy storage systems that utilize a transmission 24 system interconnection to the same physical substation as the 25 nuclear electric generating facility. 26 (g) Materials, supplies, and components permanently 27 incorporated into or consumed in the construction, repair, or 28 maintenance of a nuclear electric generation facility. 29 (h) Digital control systems, software, cybersecurity, 30 infrastructure, and physical security systems and equipment 31 used in the safe and compliant operation of the nuclear 32 electric generation facility. 33 (i) Equipment, materials, systems, and services required to 34 restart operations at a previously operational nuclear electric 35 -3- HF 2757 (2) 91 jm/jh/md 3/ 4

H.F. 2757 generation facility that has ceased commercial operation, 1 including but not limited to refurbishment, modernization, 2 regulatory compliance upgrades, and relicensing activities. 3 (2) “Site preparation activities” means the same as defined 4 in subsection 95, paragraph “f” . 5 i. This subsection is repealed on July 1, 2051. 6 Sec. 2. Section 423.4, subsection 1, paragraph a, Code 2026, 7 is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (11) A nuclear electric generation 9 facility as defined in section 423.3, subsection 111. 10 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 11 retroactively to January 1, 2026, for qualifying tangible 12 personal property or specified digital products sold, or 13 services furnished on or after that date. 14 -4- HF 2757 (2) 91 jm/jh/md 4/ 4