The company planning to reopen a nuclear power plant near Cedar Rapids could see large sales tax breaks under a bill passed by the Iowa House Wednesday.
The bill (HF 2757) would grant sales and use tax exemptions for companies starting or restarting nuclear plants after 2027. Companies would stop receiving the exemptions once they become operational, and if they don’t start within 12.5 years of receiving the exemption, they would have to repay the taxes.
A fiscal note on the bill projects it would decrease state and local revenue by more than $90 million over the next five years.
The proposal would impact NextEra Energy, which is planning to restart the Duane Arnold Energy Center in Palo by 2029.
Rep. Eric Gjerde, D-Cedar Rapids, said the bill will bring more economic growth to the state.
“We know that nuclear energy is the future of energy,” Gjerde said. “This legislation tells everybody that Iowa is welcome to business and nuclear energy coming in.”
Rep. David Young, R-Van Meter, said tax exemptions in the bill expire in 25 years in order to push energy companies to come to the state now.
“We tell folks that this does not go on forever,” Young said. “If you want to come to Iowa and try to put forth nuclear energy for our consumers and customers, then you better start it. Better get at it.”
The bill passed by 94-1 and next heads to the Senate. A Senate proposal would require nuclear plants and data centers to donate to nuclear engineering programs at the state's universities in order to receive sales and use tax breaks.