A bill in the Iowa Legislature offers tax breaks to bolster nuclear energy in the state. The measure (HF 2757) passed 43 to 4 in the Senate.
Companies starting or restarting nuclear plants could receive sales tax exemptions during construction of nuclear facilities if they donate to nuclear energy workforce programs at the state’s universities.
The sales tax breaks would end once the plant is operational.
Sen. Mike Bousselot, R-Ankeny, said the bill will support the state’s energy and workforce needs.
“Having a higher education and certificate program or graduate degree program or degree program could be beneficial, not only for energy users, but also for Iowa jobs,” Bousselot said.
Those against the bill said it subsidizes an already profitable industry at the expense of lost local and state tax revenue.
“If it generates enough benefits to the companies so they can cover the cost of doing the project, then it meets the market test for success, and there's no reason that the state should subsidize that,” said Sen. Herman Quirmbach, D-Ames.
A fiscal note on the bill estimates it would bring in around $4 million over three years to a nuclear workforce fund. It would reduce state and local tax revenues by a total of nearly $60 million over that same time.
The proposal would impact NextEra Energy, which is restarting the Duane Arnold nuclear plant in eastern Iowa.