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 plant 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.
“We need nuclear energy in Iowa. We need an all-of-the-above strategy,” Young said. “It’s safe, it’s clean, it’s dependable, it’s more affordable for Iowans and it creates economic development with good paying and lasting jobs.”
A U-S 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 and a half years would have to repay the state.
