Building Beyond Tomorrow

Illinois Department of Commerce and Economic Opportunity

Illinois State Agencies Quantum Partners

Since 2019, the State of Illinois has supported the growth of quantum information sciences and technology (QIST) throughout the state. Through state capital investments, strong partnerships with our national labs and research and educational institutions, and a laser focus on start-up and business support, Illinois is the leading quantum ecosystem in the country.

The Illinois Department of Commerce and Economic Opportunity (DCEO) serves as Illinois’ lead agency collaborating with QIST stakeholders and assisting businesses through incentives, tax credits, grants, and technical assistance in our targeted industries, including quantum. Below is a list of incentives that may be available to businesses in the field of quantum as well as an overview of the robust quantum industry ecosystem in Illinois.

To date, over $200 million in state resources and nearly $300 million in federal funding has been awarded in Illinois to advance quantum research, grow the quantum industry and lead quantum workforce training for the future.

Illinois’ latest proposed state budget includes $500 million in investments to solidify Illinois’ leadership in quantum and advanced microelectronics. These investments will create a shared cryogenic facility for research and development and infrastructure for a world-class quantum campus. The funds include state matching contributions for up to an additional $11 billion in federal CHIPS Act R&D funding opportunities.

Business Incentives

The State of Illinois Department of Commerce and Economic Opportunity has a comprehensive suite of incentives to help quantum businesses locate and grow in Illinois.

Manufacturing Illinois Chips for Real Opportunity Act (MICRO):

Companies that manufacture semiconductor or microchips or suppliers and makers of associated component parts can receive payroll withholding benefits, tax credits covering a percentage of emploee training costs, tax exemptions, property tax abatements, site selection support and expedited permitting.

Economic Development for a Growing Economy Tax Credit Program (EDGE) and EDGE for Start-ups:

The State’s bread and butter tax credit program provides corporate income tax credits for new and retained jobs. For recently started companies, the State amended the EDGE program to create EDGE for Start- Ups which provides credits against payroll withholding.

Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) Phase I Matching Program:

The federal SBIR and STTR programs are highly competitive programs that encourage domestic small businesses to engage in federal R&D with the potential for commercialization. Illinois’ matching grant program provides a state match of up to $50K to Illinois-based companies that have received a Phase I award through a federal SBIR or STTR program.

Angel Investment Tax Credit Program:

Tax incentive program encouraging investments in innovative, early-stage companies by providing investors in registered businesses with a state tax credit equal to 25% of their investment.

Federal Grant Support Program:

Supports Illinois-based applicants for federal grants with a match of up to $2 million, contingent upon receiving the federal award.

Illinois Innovation Venture Fund (INVENT):

SSBCI-funded venture capital program partners with co- investors to invest up to $6 million in Illinois-based start-ups, focusing on sectors aligned with our economic development plan (including QIST) and underserved communities and founders.

Innovation Vouchers:

Grant program providing up to $75K for Illinois’ companies to engage in research projects in partnership with an Illinois institute of higher education.

Ecosystem

Illinois is home to a strongly connected quantum ecosystem that includes:

Anchor collaborative:

The Chicago Quantum Exchange, one of the largest quantum collaboratives in the country, along with University of Chicago and University of Illinois Urbana Champaign received $200 million from Governor Pritzker’s Rebuild Illinois Capital Plan to support a joint research building in the City of Chicago.

National Labs:

Illinois has four National Quantum Labs. Illinois institutions represent 40% of the 2018 National NQI center funds:

Start-ups, incubators and accelerators:

Duality, the first quantum startup accelerator program in the US, is in Chicago and a strong ecosystem partner. Illinois is home to numerous quantum start-ups and incubators and since 2017, Illinois quantum startups have raised $33.2 million through 27 agreements — the second-highest number of partnerships by quantum startups in the country.

Research and workforce:

Illinois has one of the largest quantum-ready talent pipelines with almost 60,000 degrees. The University of Chicago received $150 million from Google and IBM for advancing quantum computing and the quantum workforce. Northwestern created their Initiative for Quantum Information Research and Engineering (INQUIRE), an interdisciplinary and collaborative effort develop a trans-disciplinary quantum workforce.

Statewide Quantum Network:

In Illinois, a 124-mile quantum network with six nodes connects the University of Chicago, the Chicago Quantum Exchange, and the U.S. Department of Energy’s Argonne and Fermi National Laboratories, representing one of the longest quantum networks in the country.

Federal Investments

Illinois has been exceedingly successful in attracting federal dollars to concentrate QIST activities in the state and make Illinois the hub for a collaborative quantum ecosystem.

Department of Energy

National Science Foundation

U.S. Economic Development Administration