States are building a foundation to reap benefits as quantum tech advances

Quantum technologies are revolutionizing sensors, computation, and communication, according to an article from the World Economic Forum.

This reality is inspiring many states to build foundations for reaping the economic benefits of these technologies. This year, several states, including Colorado, Illinois, New Mexico, South Carolina and South Dakota have passed legislation, provided new funding or have launched new quantum initiatives.

On May 28, 2024, Colorado Gov. Jared Polis signed HB24-1325, which creates “two tax incentives to support the development of the quantum technology ecosystem in the state.” One incentive creates a 100% refundable income tax credit for qualifying investments in fixed capital assets as part of a coordinated plan to create a shared quantum facility from 2025 to 2033. The other creates a 100% refundable income tax credit to offset losses incurred in connection with a registered loan to a quantum company for income tax years commencing on or after January 1, 2026, but before January 1, 2046.

On June 26, 2024, Illinois Gov. JB Pritzker gave final approval to a plan to bolster the state’s tech industry, including an incentives package—backed by $500 million in the state budget—aimed at making the state 0the nation’s leader in quantum computing. According to an article in the Illinois Times, “This is tied to $500 million in capital funding, which was approved earlier this month as part of the state's budget for the upcoming fiscal year. That includes $100 million in funding for construction at the site, $200 million for a cryogenic facility, and $200 million in matching funds for federal grant programs. That's on top of $200 million the state spent on quantum computing four years ago.”

In New Mexico, the University of New Mexico partnered with Sandia National Laboratories to launch the Quantum New Mexico Institute. The institute’s interdisciplinary foundation will include several departments across the University including Chemistry & Chemical Biology, Computer Science, Electrical & Computer Engineering, Mathematics & Statistics, and Physics & Astronomy. recently partnered with the.

The South Carolina Quantum Association launched an effort to develop quantum computing technology and talent in the state through $15 million approved by the South Carolina legislature in the fiscal year 2023-24 budget.

On March 13, 2024, Governor Kristi Noem signed SB 45, which provided $3 million to the South Dakota Board of Regents to establish the Center for Quantum Information Science and Technology. 

There are three types of quantum technology, each representing an area where there could be significant advances in the coming years. As outlined on NIST’s Manufacturing Innovation Blog, the areas are:

• Quantum computing, which could solve certain problems much faster than classical computers, with potential applications in drug discovery, materials science, financial modeling, and many others.
• Quantum sensors, which have sensitivity with applications in medical imaging, navigation, and geophysical exploration. 
• Quantum communication, which features advanced encryption and is expected to enable more secure information sharing across public and private sector networks.

Each of these types are expected to have a significant impact on the economy; according to McKinsey, worldwide, the technology could be worth trillions of dollars within the next decade.

The World Economic Forum notes quantum computing can not only “provide a significant performance boost in processing, but it also has the potential to solve complex problems much faster than even the most powerful supercomputers today.”

Quantum sensors, the World Economic Forum reported, “can be much more sensitive than classical ones.” The article cites Stefan Leichenauer, Vice President of Engineering at SandboxAQ, as saying “…they’ll get better as time goes on, as the technology matures … (b)ut even today, they are already being used for next-generation medical devices, (location-based marketing and advertising), navigation and mineral discovery.”

A current in-space test from Boeing demonstrates the stage of applying quantum technologies to satellite communications. On September 10, 2024, Boeing announced the launch of a satellite designed to demonstrate quantum entanglement swapping capabilities on orbit, which Boeing says is a “first of its kind space mission.” They also note in the press release, “Entanglement swapping relies on quantum teleportation—a method where the information carried by a particle can be transferred without having to move the particle itself across the distance. Albert Einstein famously referred to this ethereal concept as ‘spooky action at a distance,’ underscoring the complex nature of quantum mechanics.”