A bipartisan group of Colorado officials and lawmakers on Wednesday unveiled legislation that allocates millions of dollars in tax credits, which they say would help position Colorado as one of the nation’s top quantum tech hubs.  

Gov. Jared Polis and state legislators on Wednesday announced legislation that creates an income tax credit and a “loan loss” reserve.

The Biden administration named Colorado a federally-designated quantum tech hub in October, citing the industry’s technological uses for medicine, computing, logistics, networks and military operations.

The state is now trying to compete in the second phase for money to develop a quantum technology ecosystem.

At stake is up to $70 million in federal funding.

And this bill would help, Polis said. 

The bill proposes $44 million in state income tax credits to fund a quantum research facility shared by private companies and the academia. It also allows a tax deduction for lab needs, such as equipment, furniture, fixtures, refrigeration and more.

The legislation also creates a $30 million “loan loss” reserve to help small and medium-sized companies with less access to funding, state officials said. That includes a refundable 15% state income tax credit earned by lenders or fund managers that extend loans to “scale up” quantum companies that are expanding operations in Colorado, officials added. 

“With this legislation, Colorado is further cementing our status as a global leader in quantum and positioning our state to draw down historic federal funding,” Polis said in a statement. “Our state’s quantum industry is growing more every day, and with the support in this bill, Colorado can continue leading the way and create more than 10,000 good-paying jobs for Coloradans.”

Establishing Colorado as a global leader in quantum mechanics would mean a $1 billion economic impact for Colorado, the governor’s office said.

Colorado leads in quantum jobs, companies, patents and Nobel Prize winners, said Jesus Salazar, board of trustees chair of the School of Mines, in a statement.

“This state support, combined with federal designation as a tech hub, will have a compounding effect on our ability to drive the vast number of breakthroughs still needed to bring this highly impactful technology to fruition and create the boon of economic opportunity for Colorado and the Rocky Mountain Region,” Salazar said.