Iowa Legislature · HF 2757 · Chapter 1146Iowa nuclear incentive and workforce law · electricity, fuels, energy costs and emissions
Jun 1, 2026 · Enacted · Chapter 1146
Rep. David E. Young · Floor manager
Reviewed Iowa nuclear law · selected topic provisions
HF 2757 creates conditional sales and use tax exemptions and refunds for purchases directly and primarily used to develop, expand or restart an eligible Iowa nuclear electricity facility. The activity must produce a new facility, increased nameplate capacity or a restart. At least one unit must begin or restart commercial operation on or after January 1, 2028, and federal nuclear licensing is required. That date is a qualification threshold, not a promised reactor restart. Governor Kim Reynolds approved the law June 1, 2026; the exemption took effect July 1, 2026. Eligible restart purchases reach back to January 1, 2026; other eligible activities start when permitted in the Iowa Economic Development Authority agreement. Exemptions end at commercial operation, defined by notice to the regional transmission operator. Contractor materials and services must be completely consumed in the eligible activities before the applicable unit’s exemption ends. The tax exemption and refund provisions repeal July 1, 2051. During the exemption period, for no more than four years of that period, the facility must contribute $2,200 annually per megawatt of nameplate capacity approved by the Iowa Utilities Commission to the Nuclear Energy Workforce Fund. This uses approved capacity, not electricity actually generated. Missing a required contribution requires repayment of that calendar year’s exemptions and refunds. The development-authority agreement must identify the applicant, eligibility date, expected commercial-operation date, repayment trigger, approved capacity, contribution due date and proof of the initial contribution. The statute requires an annual tax report each January 31 after entering the agreement, and notice to Revenue within 30 days after notifying the transmission operator of commercial operation. Revenue’s guidance describes reporting after designated-exempt-entity registration; its registration procedure is separate from the statute’s agreement trigger. Failure to commence or restart commercial operation within 12.5 years of the later of the applicable unit’s certificate of public convenience, use and necessity or first safety-related concrete triggers repayment of the facility’s exemptions and refunds and construction contractors’ exemptions, reduced by workforce-fund contributions. These are conditional tax-repayment rules, not evidence that repayment occurred. HF 2800, approved June 2, 2026 with item vetoes elsewhere, corrects “digital projects” to “digital products” in HF 2757 sections 5–6. Its approved section 31 does not change the nuclear eligibility dates and is not among section 32’s immediate-effect exceptions. This review uses that specific amendment; HF 2800’s other approved and vetoed provisions require their own topic review. These provisions establish policy requirements, not a measured effect on state income, electricity prices, generation, educational attainment, GDP or unemployment. Actual agreements, registrations, contributions, tax claims, programs and reactor approvals need separate evidence. Full Iowa and all-state coverage remains under review.
Approved June 1, 2026; effective July 1. Retroactive restart-purchase eligibility, minimum commercial-operation dates and future reporting deadlines are distinct. HF 2800 section 31 corrects two words, with approval June 2 and effectiveness July 1.
Why this record is included
HF 2757 creates conditional sales and use tax exemptions and refunds for purchases directly and primarily used to develop, expand or restart an eligible Iowa nuclear electricity facility. The activity must produce a new facility, increased nameplate capacity or a restart. At least one unit must begin or restart commercial operation on or after January 1, 2028, and federal nuclear licensing is required. That date is a qualification threshold, not a promised reactor restart. Governor Kim Reynolds approved the law June 1, 2026; the exemption took effect July 1, 2026. Eligible restart purchases reach back to January 1, 2026; other eligible activities start when permitted in the Iowa Economic Development Authority agreement. Exemptions end at commercial operation, defined by notice to the regional transmission operator. Contractor materials and services must be completely consumed in the eligible activities before the applicable unit’s exemption ends. The tax exemption and refund provisions repeal July 1, 2051. During the exemption period, for no more than four years of that period, the facility must contribute $2,200 annually per megawatt of nameplate capacity approved by the Iowa Utilities Commission to the Nuclear Energy Workforce Fund. This uses approved capacity, not electricity actually generated. Missing a required contribution requires repayment of that calendar year’s exemptions and refunds. The development-authority agreement must identify the applicant, eligibility date, expected commercial-operation date, repayment trigger, approved capacity, contribution due date and proof of the initial contribution. The statute requires an annual tax report each January 31 after entering the agreement, and notice to Revenue within 30 days after notifying the transmission operator of commercial operation. Revenue’s guidance describes reporting after designated-exempt-entity registration; its registration procedure is separate from the statute’s agreement trigger. Failure to commence or restart commercial operation within 12.5 years of the later of the applicable unit’s certificate of public convenience, use and necessity or first safety-related concrete triggers repayment of the facility’s exemptions and refunds and construction contractors’ exemptions, reduced by workforce-fund contributions. These are conditional tax-repayment rules, not evidence that repayment occurred. HF 2800, approved June 2, 2026 with item vetoes elsewhere, corrects “digital projects” to “digital products” in HF 2757 sections 5–6. Its approved section 31 does not change the nuclear eligibility dates and is not among section 32’s immediate-effect exceptions. This review uses that specific amendment; HF 2800’s other approved and vetoed provisions require their own topic review. These provisions establish policy requirements, not a measured effect on state income, electricity prices, generation, educational attainment, GDP or unemployment. Actual agreements, registrations, contributions, tax claims, programs and reactor approvals need separate evidence. Full Iowa and all-state coverage remains under review.
Retained Iowa evidence context: Electricity generated from wind · income-taxes · reviewed Iowa policy context · deficit-debt-interest · reviewed Iowa policy context · education · reviewed Iowa policy context · energy · reviewed Iowa policy context · unemployment-rate · reviewed Iowa policy context · real-gdp · reviewed Iowa policy context. This record’s connection to the topic does not establish an effect on the measured result.
an increased nameplate capacity for an existing nuclear electric generation facility
Review official supporting evidence ↗