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Bill

H 5436

An Act establishing MassQuantum

194th Legislature (2025-2026) Introduced by Mike Day

MassQuantum would create a state-backed framework, funding and certifying quantum companies, and offering incentives, grants, and loans to accelerate quantum R&D, manufacturing, an

Hearing scheduled for 06/23/2026 from 11:00 AM-05:00 PM in Written Testimony Only
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Bill Summary · H 5436

Overview

H 5436, An Act establishing MassQuantum, would create a Massachusetts state-led framework to stimulate quantum science activity in the Commonwealth. It establishes a new Massachusetts Quantum Center and a set of investment funds, tax incentives, and grant programs aimed at certifying quantum companies, financing research and manufacturing, and accelerating job creation in the quantum sector.

Main purpose and intent

  • Establish the Massachusetts Quantum Center to coordinate state efforts, financing, and policy related to quantum science.
  • Create a comprehensive program to certify quantum companies and provide targeted incentives (tax benefits, grants, loans, and equity investments) to spur research, development, manufacturing, and commercialization of quantum technologies in Massachusetts.
  • Position Massachusetts as a hub for quantum industry by funding entrepreneurship, workforce development, and collaboration among universities, industry, and federal/private partners.

Key provisions and changes

  • Creation of Chapter 23O: Massachusetts Quantum Center (MassQuantum)

    • Public instrumentality under the Executive Office of Economic Development; autonomous in governance.
    • Governing board of five commissioners (secretaries, industry leaders, and an academic leader) with five-year terms.
    • Broad powers for governance, contracting, financing, real estate, investment, and coordination of quantum initiatives.
    • Authority to protect confidential information and conduct executive sessions for trade secrets.
    • Authority to issue bonds or borrow, hold assets, enter agreements, and oversee investments and IP arrangements.

  • Definitions (Section 1)

    • Defines terms: Affiliate, Certified quantum company, Eligible new job, Quantum center, Quantum investment funds, Real estate project, Qualified investment, etc.
    • Establishes criteria for “new state revenue,” “eligible new jobs,” and “quantum science.”

  • Commonwealth Quantum Investment Program (Section 4)

    • Certification of quantum companies as “certified quantum companies” based on board-approved proposals.
    • Certification proposals must include estimated new state revenue, employment, wages, diversity plans, and banking/financing arrangements.
    • Certification is valid for 5 years; annual reporting required.
    • Certification can be revoked if actual outcomes fall substantially short (with specific variance triggers, e.g., less than 70% expected ROI).

  • Tax incentives and funding (Section 4 and Sections 5-7)

    • MassQuantum Tax Incentive Program: annual statewide cap of $500 million for incentives, with board and Secretary of Administration and Finance involvement; incentives require explicit approval and must be granted in writing.
    • Massachusetts Quantum Investment Fund (Section 5): A dedicated fund to finance investments, grants, and loans for quantum projects. Fund governance, investment rules, eligible uses (R&D facilities, manufacturing, proof of concept, etc.), and annual reporting requirements.
    • Small Business Equity Investment Fund (Section 6): Seed/early-stage investments limited to $6 million per enterprise; criteria focusing on potential economic benefit, employment, and recoupment, with governance and private investment participation rules.
    • Higher Education Grant Fund (Section 7): Grants to graduate students and post-doctoral fellows in quantum, with income and residency restrictions; supports living expenses and internships.
    • Small Business Matching Grant Fund (Section 8): Matching grants to entities—public agencies, universities, nonprofits, or quantum/high-tech companies tied to SBIR/STTR funds for manufacturing, workforce training, and related infrastructure; limit of up to $5 million per recipient per year.

  • Other provisions

    • Funds are not considered general debt of the Commonwealth; investments are made from dedicated funds.
    • Rules and guidelines to be promulgated by the MassQuantum board; reports to legislative committees on an ongoing basis.
    • Emphasis on workforce development, diversity, IP arrangements, and leveraging federal/private funds.

Who is affected

  • Quantum-focused companies, startups, universities, and research institutions operating in or seeking to establish operations in Massachusetts.
  • Massachusetts residents who could gain new quantum-related jobs and training opportunities.
  • Massachusetts-based contractors, banks, and financial institutions engaging with grants, loans, and equity investments.
  • State agencies and funds that administer economic development, tax incentives, and higher education programs.

Procedural and timeline aspects

  • Certification lasts 5 years; annual reporting is required.
  • Revocation triggers include substantial underperformance relative to projections (e.g., ROI shortfalls) with public accounting and notification to relevant committees.
  • The framework contemplates ongoing rules, guidelines, and annual reporting to Ways and Means and other economic committees.
  • Tax incentives have annual caps and require explicit, written approval from the Secretary of Administration and Finance.

This bill would create a substantial, multi-fund ecosystem to finance, incentivize, and oversee quantum science development in Massachusetts, with a strong emphasis on job creation, economic impact, and public-private collaboration.

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

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