WeVote
Log In

Bill

Bill

SSB 3181

A bill for an act making certain sales and use tax exemptions relating to nuclear electric generation facilities, web search portal businesses, and data center businesses contingent upon making contributions to institutions of higher education governed by the state board of regents.

2025-2026 Regular Session

The bill grants sales and use tax exemptions for nuclear electric generation facilities, web search portals, and data centers only if recipients donate to Iowa Regent-governed high

Committee report approving bill, renumbered as SF 2498.
#boards #commissions #andcouncils #buildings #businessentities #collegesanduniversities #donations #economicdevelopmentauthority #internet #nuclearenergy #regentsboard #reports #revenuedepartment #salestaxes #taxexemptions #usetaxes #workforcedevelopment
0
WeVote Research Nonpartisan
Bill Summary · SSB 3181

Summary of SSB 3181 (Iowa, 2025-2026)

Purpose and intent

SSB 3181 proposes targeted sales and use tax exemptions in Iowa for three broad categories of activities related to large-scale energy and digital infrastructure, contingent upon the recipients making contributions to higher education institutions governed by the state board of regents. The bill defines a “nuclear electric generation facility” and outlines the types of assets and systems that fall within the exemption, signaling an intent to support the development or expansion of nuclear generation capacity, as well as certain web search portal and data center business activities, where tied charitable or educational contributions are made.

Key provisions and changes

  • Scope of exemptions:

    • The bill provides sales and use tax exemptions related to: 1) Nuclear electric generation facilities (as defined below). 2) Web search portal businesses. 3) Data center businesses.

  • Definition: “Nuclear electric generation facility”
    The bill provides a comprehensive, cross-cutting definition that includes, but is not limited to:

    • Nuclear reactors, reactor fuel cores, reactor vessels, steam generators, heat exchangers, turbine systems, control rods, instrumentation, cooling systems, fuel handling and storage systems, radiation shielding, radiation sources, and other primary nuclear generation components.
    • Structures and buildings housing nuclear generation systems, including containment buildings, auxiliary buildings, cooling towers, and on-site storage facilities related to nuclear operations.
    • Electrical generation and transformation equipment (turbines, generators, switchgear, transformers, inverters, transmission structures, conductors, substations, power conditioning and control equipment).
    • Equipment and systems for safety, security, radiation monitoring, emergency power, operator training, maintenance training, safety-related equipment storage, and warehousing.
    • Environmental protection measures required for operation.
    • System materials, components, equipment, storage facilities, and buildings associated with integrated systems that enhance grid-delivery flexibility.
    • Specific examples of energy storage and energy management capabilities, including:
      • Systems storing and utilizing thermal or electrical energy from the nuclear facility prior to grid delivery.
      • Energy storage systems that interconnect with the same transmission system at a given substation as the nuclear facility.

  • Contingent on higher education contributions:
    The exemptions apply only if the recipient makes contributions to institutions of higher education governed by the Iowa Board of Regents. The bill implies a linkage between capital/development incentives and support for public higher education.

  • Operational and development context:
    The bill’s language targets facilities in advanced stages of development or in the process of obtaining federal licensing from the U.S. Nuclear Regulatory Commission, indicating a focus on projects nearing final regulatory approval or construction readiness.

Who would be affected

  • Nuclear electric generation facilities: Entities developing or operating qualifying nuclear facilities in Iowa could receive sales and use tax exemptions for eligible purchases and related costs.
  • Web search portal businesses and data center businesses: These technology-related industries could qualify for exemptions when their activities fall within the definitions and meet the educational contribution condition.
  • Higher education system: The exemption condition requires voluntary contributions to regents-governed institutions, creating a potential funding link to public higher education.

Procedural and timeline aspects

  • Introduced and referral: Bill introduced on February 25, 2026, referred to the Ways and Means committee.
  • Subcommittee activity: A subcommittee (Dawson, Quirmbach, and Taylor) considered the bill, with amendments recommended on February 25, 2026.
  • Committee action and renumbering: On April 14, 2026, the Ways and Means committee reported favorably, and the bill was renumbered as SF 2498 (indicating continued legislative consideration under a new designation).
  • Status: As of the latest action, the bill progressed through committee with favorable report; it is subject to floor consideration and potential further amendments under the Senate or corresponding chamber’s procedures.

Practical implications and considerations

  • The exemptions could reduce the upfront tax costs for large-scale nuclear, web search portal, and data center projects, potentially lowering the total cost of capital and incentivizing development.
  • The requirement for contributions toregents-governed higher education institutions introduces a philanthropy/compensation element that links industry incentives to public education funding.
  • Given the broad definition of “nuclear electric generation facility,” the exemption could apply to a wide range of equipment and infrastructure, including energy storage and grid optimization components, not just core reactor facilities.
  • The bill does not specify dollar thresholds, cap on exemptions, or duration of the exemption; these details would be critical in assessing fiscal impact and cost to state revenue.

Note

This summary reflects the text available and the action history up to the latest committee report renumbering to SF 2498. For evaluation purposes, it is important to review the full engrossed bill and any accompanying fiscal notes or amendments.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.