HB3661 creates a new Illinois tax credit program for quantum information science research and development. Beginning with tax years ending on or after December 31, 2026, the Department of Commerce and Economic Opportunity (DCEO) would issue income tax credit certificates equal to 13% of qualifying quantum information science expenditures made in Illinois. The bill states its purpose is to increase quantum investment and research in the state and position Illinois as a leader in quantum computing and related technologies.
The credit applies to expenditures that would qualify as federal research and development expenses under Section 41 of the Internal Revenue Code, so long as the work is conducted in Illinois and is specifically related to quantum information science. The bill caps the total amount of credits that may be awarded at $25 million per calendar year and directs DCEO, in consultation with the Department of Revenue, to adopt implementing rules. It also makes conforming changes to the Illinois Income Tax Act and allows unused credits to be carried forward for up to five years, while prohibiting taxpayers from claiming both this credit and the existing state research and development credit for the same expenditures.
Impact
HB3661 would add a new state-administered corporate and individual income tax incentive targeted at quantum research and development activity in Illinois. It amends the Department of Commerce and Economic Opportunity Law to create the Quantum Information Science Research and Development Tax Credit Program and amends the Illinois Income Tax Act to authorize the corresponding income tax credit, with carryforward rules and coordination provisions. The bill would affect taxpayers making qualifying quantum-related R&D expenditures in Illinois, while limiting the state’s fiscal exposure through the annual $25 million aggregate cap.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the measure appears to be framed positively as an economic development and innovation initiative. Its stated goal is to expand quantum investment and make Illinois a national leader in the field, suggesting a pro-technology, pro-research policy approach. No formal opposition, amendments, or recorded floor/committee debate are available in the provided materials.
Contention
The main potential points of contention are fiscal cost, program design, and overlap with existing incentives. The annual $25 million cap may be viewed as either a necessary budget safeguard or too small to meaningfully influence investment. Another likely issue is whether a specialized quantum credit is preferable to broader R&D incentives, especially since the bill bars taxpayers from claiming both this credit and the general research and development credit for the same expenditures. Because no committee transcript or vote history is provided, no specific legislator or stakeholder objections can be identified.