The bill establishes sales and use tax exemptions and refunds specifically for nuclear electric generation facilities that commence or restart operations on or after January 1, 2026. It introduces a new subsection to Section 423.3 of the Iowa Code, which outlines that the sales price of tangible personal property, specified digital products, and services provided to these facilities will be exempt from sales tax, provided they are used directly in the preparation, construction, or operation of the facility. The bill also stipulates that these exemptions do not apply to motor vehicles and includes provisions for the repayment of tax exemptions if the facility does not commence or restart operations within a specified timeframe.

Additionally, the bill amends Section 423.4 to include nuclear electric generation facilities as eligible for refunds. It includes a retroactive applicability clause, ensuring that the exemptions apply to qualifying sales and services from January 1, 2026. The bill also outlines the definition of a nuclear electric generation facility and specifies the types of equipment and services that qualify for the tax exemptions. The new provisions are set to expire on July 1, 2051, and the Department of Revenue is tasked with issuing guidance and adopting rules to administer these exemptions.

Statutes affected:
Introduced: 423.3
Reprinted: 423.3, 423.4