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HSB 130

A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.

2025-2026 Regular Session

Iowa offers a tax credit against personal and corporate taxes for investments in a shared quantum facility, funded in part by eligible federal grants.

Subcommittee recommends passage.
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Bill Summary · HSB 130

Summary: House Study Bill 130 (HSB 130) – Quantum Technology Tax Credit

Overview

HSB 130 proposes a new tax credit program in Iowa to encourage investment in quantum technology through the Iowa Economic Development Authority (IEDA). The credit would be available against both individual and corporate income taxes. The program focuses on creating a “shared quantum facility” and supports consortium-based investments funded in part by qualifying federal grants.

  • Status: Subcommittee recommends passage
  • Introduced: February 5, 2025
  • Subcommittee: Sorensen, Wichtendahl, and Wood
  • Legislative actions: Subcommittee passage recommended on 2025-02-12

Purpose and Intent

  • Promote development of quantum technology in Iowa by enabling a tax credit tied to investments in qualifying fixed capital assets that create or support a regional quantum ecosystem.
  • Facilitate collaboration among multiple entities (for-profit, nonprofit, or both) to jointly fund eligible projects and establish a shared quantum facility in Iowa.

Key Provisions

Eligible Applicants and Consortiums

  • An applicant may be an individual entity or a group of entities acting together (a consortium), including for-profit, nonprofit, or both.
  • A consortium may include joint investments by multiple members and must designate a representative to act on behalf of the consortium for tax matters. The representative must disclose the names and tax identification numbers of all consortium members.
  • The applicant must submit an application to IEDA in a manner prescribed by the authority.

Shared Quantum Facility

  • A “shared quantum facility” is defined as a primary location in Iowa where qualifying activities related to quantum business and a quantum ecosystem are performed and where economic benefits are provided.

Qualified Investments

  • “Qualifying investment” means the amount paid to acquire, construct, reconstruct, or erect qualifying fixed capital assets, to the extent such amounts are required to be capitalized.
  • The qualifying investment is the basis for the credit calculation and can be aggregate for consortium members.

Federal Grants Requirement

  • Applications must include evidence of a multimillion-dollar federal grant from the U.S. Economic Development Administration (EDA) for the Regional Technology and Innovation Program, or from a comparable federal program.
  • The credit amount may be tied to the qualified applicant’s estimated qualifying investment, and the authority may authorize a tax credit equal to that estimated investment.

Tax Credit Certificate

  • Upon review and approval, IEDA shall issue a tax credit certificate to the qualified business indicating the amount available to be claimed.

Credit Mechanics and Scope

  • The credit is available against Iowa individual and corporate income taxes.
  • Authority approval may authorize a tax credit in an amount equal to the qualified applicant’s estimated qualifying investment.
  • For consortia, the credit amount includes the aggregate qualifying investment by all consortium members.

Timing and Applicability

  • Eligible project must be placed in service prior to January 1, 2031.
  • Applications should be submitted with evidence of the qualifying federal grant, aligning the project with federal funding timelines.

Administration and Oversight

  • Administration by the Iowa Economic Development Authority (IEDA).
  • The bill requires defined administrative steps for application, certification, and disclosure of consortium members for tax matters.

Potential Impact (General)

  • Encourages private and nonprofit collaboration to invest in quantum infrastructure and ecosystem development in Iowa.
  • Links state tax incentives to federal program funding, potentially leveraging significant federal support.
  • Creates a pathway for multi-entity collaborations to share costs and benefits of a regional quantum facility.

Note: This summary reflects the bill text and status as of the introduced date and subsequent subcommittee action.

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

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