This bill amends the Income Tax Act of 1967 by adding two new sections, 677a and 717a, which establish tax credits for qualified research and development expenses related to advanced nuclear reactor technologies. Starting from tax years beginning on or after January 1, 2026, taxpayers and employers can claim a credit equal to 15% of their qualified research and development expenses incurred during the tax year. However, they cannot claim credits under both sections for the same expenses. To qualify for the credit, taxpayers and employers must submit a tentative claim to the department by March 15 of the following year, detailing the expenses incurred.

The bill also sets a cap on the total amount of credits that can be claimed across both sections, limiting it to $2,500,000 per calendar year. If the total tentative claims exceed this amount, the department will prorate the credits among claimants. Additionally, any credit amount exceeding the taxpayer's or employer's tax liability can be carried forward for up to 15 years. The definitions of "qualified research and development expenses" and related terms are specified to ensure that the credits apply only to research conducted within the state and focused on advanced nuclear reactor technologies.

Statutes affected:
House Introduced Bill: 206.1, 206.847