Summary:

 Senate Bill 211 (SB 211) establishes two new tax credits: the Quantum Facility Infrastructure Income Tax Credit and the Quantum Facility Infrastructure Corporate Income Tax Credit. These credits incentivize investments in infrastructure for quantum technology facilities in New Mexico by providing a refundable credit for qualifying expenditures. The total available credits are capped at $75 million with a potential increase to $150 million if the state receives a National Science Foundation (NSF) Regional Innovation Engines Award for Quantum Technologies. The credits are available for taxable years before January 1, 2035, and the bill includes a delayed repeal effective January 1, 2036. 

Legislation Overview:

 Senate Bill 211 (SB 211) enacts two new sections in the Income Tax Act and the Corporate Income and Franchise Tax Act, creating tax credits for businesses investing in quantum technology infrastructure in New Mexico. The bill defines a “quantum facility” as a research and development site in quantum technology, excluding facilities operated under federal contracts. “Quantum technology” is defined as technology that relies on quantum superposition or entanglement or innovations that enable those capabilities.

Taxpayers who invest at least $3 million in infrastructure for a quantum facility may claim a credit equal to 30% of qualified expenditures, with a cap of $50 million per facility. Before making a qualified expenditure, taxpayers must apply for preliminary certification from the Economic Development Department (EDD), which will confirm eligibility and issue a single certificate per facility, regardless of ownership changes. Within 12 months of facility construction completion, taxpayers must apply for final certification from EDD. The total tax credits available statewide are capped at $75 million. However, if New Mexico secures a National Science Foundation (NSF) Regional Innovation Engines Award for Quantum Technologies, the cap increases to $150 million. The credit must be claimed within one year of receiving final certification. If the credit exceeds the taxpayer’s income tax liability, the remaining amount will be refunded. Taxpayers filing jointly must split the credit equally, and business partnerships may allocate the credit proportionally based on ownership shares.

The bill includes a delayed repeal, meaning the tax credits expire on January 1, 2036, and applies to taxable years beginning on or after January 1, 2025.

Implications
SB 211 provides a major financial incentive for the development of quantum technology infrastructure in New Mexico. By offering a 30% refundable tax credit for eligible investments, the bill could attract tech companies, research institutions, and venture capital to establish quantum computing and research hubs in the state. The $75 million cap on total credits ensures that the program remains fiscally controlled, but the potential increase to $150 million if New Mexico secures an NSF Regional Innovation Engines Award reflects the state’s ambition to become a national leader in quantum technology.

EDD will incur administrative costs for processing certifications and verifying expenditures. The requirement that only one certificate per facility can be issued helps prevent abuse of the program but may limit investment flexibility if facilities change ownership.

While the credit could spur private-sector investment, the impact on state revenue depends on how many businesses apply. The refundability of the credit could lead to large direct payments from the state treasury, especially if multiple $50 million claims are approved.

By sunsetting the program in 2036, the bill allows for an evaluation period to assess whether quantum infrastructure investments generate sufficient economic returns to justify the tax expenditure.

 

Current Law:

 New Mexico does not currently offer tax credits specifically for quantum technology infrastructure. SB 211 introduces a targeted incentive program designed to attract quantum computing and quantum research investments, aligning the state with federal initiatives promoting quantum innovation.