SB2458 creates a new Illinois tax credit program for quantum information science research and development. The bill directs the Department of Commerce and Economic Opportunity to award an income tax credit equal to 13% of qualifying quantum information science expenditures made by a taxpayer during the taxable year, beginning with tax years ending on or after December 31, 2026. The credit is tied to expenditures that would qualify under the federal research credit rules and that are conducted in Illinois, with quantum information science defined by reference to the federal National Quantum Initiative Act.
The bill caps the total amount of credits that may be awarded at $25 million per calendar year and requires DCEO, in consultation with the Department of Revenue, to adopt rules to administer the program. It also makes conforming changes to the Illinois Income Tax Act, allows unused credits to be carried forward for up to five years, and prohibits taxpayers from claiming both this new credit and the existing Illinois research and development credit for the same expenditures. The measure is effective immediately, though the credit itself applies to later tax years.
Impact
SB2458 would add a new state tax incentive aimed at expanding quantum computing and related research activity in Illinois, while also amending the Illinois Income Tax Act to accommodate the new credit. It would affect taxpayers making qualifying quantum information science R&D expenditures in the state, particularly businesses and research entities in the quantum technology sector, by reducing their Illinois income tax liability. The bill would also require administrative rulemaking by DCEO and the Department of Revenue and would create a new statutory framework for certifying and claiming the credit.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive and promotional toward Illinois’s quantum technology sector. The findings and purpose section frames the measure as a way to increase investment and make Illinois a leader in quantum information science, suggesting a pro-innovation, economic-development rationale. No recorded opposition or amendments are shown in the available context.
Contention
The main potential points of contention are fiscal cost, program design, and overlap with existing incentives. The bill authorizes up to $25 million in credits per year, which could raise concerns about state revenue loss and whether the incentive will produce sufficient economic return. Another issue is that taxpayers cannot claim both this credit and the existing research and development credit for the same expenditures, which may affect how businesses structure claims and could limit the benefit for some firms. Because the credit depends on administrative rules and certification by DCEO, implementation details could also be a point of scrutiny.