This bill establishes new conditions for sales and use tax exemptions for nuclear electric generation facilities, web search portal businesses, and data center businesses in Iowa. It mandates that these entities enter into agreements with the economic development authority to contribute a minimum of five percent of the value of their sales tax exemptions to support nuclear engineering programs at state institutions governed by the state board of regents. The bill outlines a verification process for these contributions and specifies that non-compliance will lead to the cancellation of tax exemption eligibility and the requirement to repay any claimed exemptions.

Furthermore, the bill introduces definitions and conditions for receiving tax exemptions, including annual reporting requirements to the department of revenue. It clarifies that the sales price of exempt property is contingent upon compliance with the new contribution requirements and specifies that certain categories of property, such as motor vehicles, are excluded from these exemptions. The bill also establishes a framework for the registration and reporting of these businesses to ensure adherence to the new regulations, particularly for those newly constructed or expanded after January 1, 2027.

Statutes affected:
Introduced: 423.3, 15E.372