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 in eastern Iowa that’s been idle for nearly six years.
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. “By doing this I think we send an alert out that, ‘Hey, Iowa is ready to go,’” Representative David Young of Van Meter said.
Under the bill, the sales tax exemption would be available for 25 years.”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.”
Representative Eric Gjerde of Cedar Rapids said nuclear energy projects are good economic development projects for the state. “We know that nuclear energy is the future of energy and this piece of legislation tells everybody that Iowa is welcome to business and nuclear energy coming in.”
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.
The post Proposed tax break for nuclear power plant construction in Iowa appeared first on KSCJ 1360.
