The bill establishes a quantum technology tax credit available against individual and corporate income taxes for eligible projects aimed at creating shared quantum facilities in Iowa. It defines key terms such as "eligible project," "qualified applicant," and "qualifying investment," and outlines the application process for obtaining the tax credit through the Iowa economic development authority. The credit is contingent upon the successful completion of an eligible project, which must be placed in service before January 1, 2031, and must be supported by a federal grant of at least two million dollars. The bill allows for consortiums of for-profit and nonprofit entities to apply collectively, with the credit amount reflecting the aggregate qualifying investments of all members.

The tax credit is available for tax years beginning on or after January 1, 2026, and will be capped at $24 million in credits awarded each fiscal year, with a total limit of $44 million in aggregate credits. The authority will prioritize projects that meet specific criteria, including substantial federal funding and demonstrable benefits to the quantum industry in Iowa. The bill also includes provisions for the potential reduction or rescission of credits if applicants fail to meet requirements, and mandates the authority to adopt rules for administering the credit. The sections of the bill that establish the tax credit and its applicability will be repealed on January 1, 2038.

Statutes affected:
Introduced: 15.330, 422.12, 422.33