Lawmakers consider sales tax break for nuclear power plant, data center construction

(Radio Iowa) – A bill to grant a state sales tax exemption during construction or expansion of data centers and nuclear power plants is under consideration in the Iowa Senate. Julie Voeck is a lobbyist with NextEra Energy Resources, which is restarting the Duane Arnold nuclear plant in Linn County.

“Policies like this would encourage additional investment here, as opposed to other places in neighboring states such as Wisconsin, where we have facilities as well,” she said. The bill has cleared a senate subcommittee. If it becomes law, nuclear power plants and data centers that get the sales tax exemption would have to donate five percent of that savings to set up a nuclear engineering program at one of the state universities.

Pam Mackey-Taylor, director of the Iowa Chapter of the Sierra Club, says the group has environmental concerns about data centers and nuclear power plants and is opposed to the bill. “If the university wants to start a program in nuclear energy, they can do that, but they don’t need a kickback from these industries,” she said.

There are only 32 universities in the U.S. that offer degrees in nuclear engineering and none are in Iowa. Iowa State University had a nuclear engineering program, but shut both down 30 years ago due to declining enrollment. I-S-U officials estimate it would cost three MILLION dollars to establish a nuclear engineering minor and one-and-a-half MILLION dollars a year to offer the required courses.