The Iowa House has voted to create new tax incentives for nuclear power plant construction as well as the project to reopen a nuclear power facility in eastern Iowa that’s been idle for nearly six years. Representative David Young, a Republican from Van Meter, says the state sales tax exemption would be for construction materials and digital products like control boards or security systems, as well as replacement parts for the Duane Arnold Energy Center near Palo.
Under the bill, the sales tax exemption would be available for 25 years.
Representative Eric Gjerde of Cedar Rapids says nuclear energy projects are good economic development projects for the state.
A US Department of Energy expert recently told the governor’s task force on nuclear energy that federal tax credits can significantly reduce the cost once a nuclear plant is operating, but state tax credits claimed while the facility is being built can make the projects possible. If the House bill becomes law, businesses that claim the sales tax break during construction but aren’t up and running within 12.5 years would have to repay the state.
