A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.
House Study Bill 130 creates a new Iowa quantum technology tax credit that may be claimed against individual and corporate income taxes. The credit is aimed at eligible projects that create a “shared quantum facility” in Iowa, meaning a primary in-state location that supports quantum businesses and the broader quantum ecosystem. To qualify, an applicant must be approved by the Iowa Economic Development Authority, place the project in service before January 1, 2031, and have received at least $2 million in a qualifying federal grant, such as from the federal Economic Development Administration’s Regional Technology and Innovation Program or a comparable program.
The bill defines key terms broadly enough to cover for-profit businesses, nonprofits, and consortia of entities jointly investing in quantum-related capital projects. Qualifying investments include land, equipment, software, and other capital assets used exclusively in Iowa for the project. The authority may issue credits as certificates or reserve credits and can impose additional conditions before issuance. The credit is available for tax years beginning on or after January 1, 2026, and before January 1, 2033, with the program repealed January 1, 2038.
The bill would add new sections to Iowa Code chapter 15 and chapter 422 to authorize and administer the quantum technology tax credit. It would reduce individual and corporate income tax liability for approved projects, allow refundable credits if the credit exceeds tax liability, prohibit transferability of the certificates, and establish recapture or rescission if project requirements are not met or the facility is sold, abandoned, or repurposed before completion. The Iowa Economic Development Authority would administer the program, adopt rules, prioritize projects with substantial federal support and demonstrated ecosystem benefits, and report to the General Assembly every two years on project and credit activity.
No committee transcript or vote record was provided, so there is no direct evidence of debate, amendments, or recorded support/opposition. Based on the bill text alone, the measure appears pro-development and designed to encourage high-tech investment in Iowa, particularly in the emerging quantum sector. The structure of the credit, including caps, reporting, and recapture provisions, suggests an effort to balance economic incentives with oversight and accountability.
Because there are no transcripts or votes, specific points of contention are not documented. Potential areas of concern inherent in the bill include the size of the tax incentive, the $24 million annual cap and $44 million aggregate cap, the requirement for a substantial federal grant as a gatekeeping criterion, and the discretion given to the Iowa Economic Development Authority to prioritize projects and impose additional conditions. Stakeholders most likely to care about these issues would include quantum industry applicants, consortium members, economic development advocates, and fiscal watchdogs concerned about tax expenditure limits and accountability.