Expand Quantum Computing Education.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1142

Short Title: Expand Quantum Computing Education. (Public)
Sponsors: Representatives Hawkins and Charles Smith (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
Operations of the House
May 4, 2026
*H1142-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND ACC ESS TO QUANTUM COMPU TING CLASSES FOR PUB LIC 2
SCHOOL STUDENTS, TO ESTABLISH THE QUANTU M COMPUTING GRANT 3
PROGRAM AT THE NORTH CAROLINA COLLABORATORY, AND TO CREATE AN 4
INCOME TAX CREDIT FOR CERTAIN BUSINESSES. 5
Whereas, quantum computing is a critical emerging technology that will have 6
implications for the security of the United States and the State of North Carolina; and 7
Whereas, military families tend to continue to serve and give back to North Carolina 8
and the United States; and 9
Whereas, North Carolina has one of the largest military populations in the United 10
States; and 11
Whereas, North Carolina is one of the leading states in the nation for innovation, 12
technology, and entrepreneurship; and 13
Whereas, North Carolina's K-12 and higher education system is key to the economic 14
success of North Carolina and the businesses that bring jobs to the State; and 15
Whereas, it is crucial that North Carolina invest in the educational programs necessary 16
to train the post -quantum workforce, support the innovation economy, and defend our national 17
security; Now, therefore, 18
The General Assembly of North Carolina enacts: 19
20
PART I. EXPAND ACCES S TO GRADE SCHOOL CL ASSES THAT PREPARE 21
STUDENTS FOR QUANTUM COMPUTING 22
SECTION 1.(a) There is appropriated from the General Fund to the Department of 23
Public Instruction (Department) the sum of two million six hundred thousand dollars 24
($2,600,000) in nonrecurring funds for the 2026-2027 fiscal year for the development, expansion, 25
or continuation of science, technology, engineering, and math (STEM) education programs that 26
assist students in developing the academic background necessary to later pursue apprenticeships, 27
internships, degree programs, or employment in quantum computing. The fund s shall be 28
allocated as follows: 29
(1) Two million dollars ($2,000,000) to be divided equally among all public 30
school units located within the geographical boundaries of any local school 31
administrative unit that contains any portion of a military base or installation. 32
(2) Two hundred thousand dollars ($200,000) to Durham Public Schools. 33
(3) Two hundred thousand dollars ($200,000) to Orange County Schools. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1142-First Edition
(4) Two hundred thousand dollars ($200,000) to Wake County Schools. 1
SECTION 1.(b) The funds allocated pursuant to this section may be used for any of 2
the following: 3
(1) Hiring or providing stipends to STEM teachers. Public school units are 4
encouraged to prioritize hiring or providing stipends to teachers at the high 5
school level with interest or background i n quantum computing, physics, 6
computing, or cryptography. 7
(2) Develop, expand, or continue collaborative or experiential learning 8
opportunities where students work with businesses, nonprofits, or higher 9
education institutions. 10
(3) Specialized summer STEM p rograms that include lab research or applied 11
learning. 12
SECTION 1.(c) No later than April 1, 2027, the Department shall report to the Joint 13
Legislative Education Oversight Committee the following information: 14
(1) A description of the classes or learning op portunities offered with funds 15
allocated pursuant to this section. 16
(2) A detailed description of how funds were spent. 17
(3) The number of students that participated in the classes or learning 18
opportunities offered as a result of the funding provided by this section. 19
(4) Any increases in student performance or outcomes in STEM programs. 20
(5) Any other information the Department deems relevant to evaluating the 21
effectiveness of funding allocated pursuant to this section. 22
SECTION 1.(d) This section becomes effective July 1, 2026. 23
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PART II. QUANTUM COMPUTING GRANT PROGRAM 25
SECTION 2.(a) Program; Purpose. – There is established the Quantum Computing 26
Grant Program (Program) to be administered by the North Carolina Collaboratory for the 27
2026-2027 academic year. The purpose of the Program shall be to provide opportunities for high 28
school students in North Carolina public school units and Department of Defense schools to work 29
with institutions of higher education on current issues in quantum computing and other emerging 30
technologies, including educational programming, interactive and applied learning opportunities, 31
and research. 32
SECTION 2.(b) Definitions. – For purposes of this section, the following definitions 33
apply: 34
(1) Collaboratory. – The North Carolina Collaboratory. 35
(2) Eligible high school. – A school providing secondary instruction that meets 36
one of the following requirements: 37
a. Is located in a public school unit. 38
b. Is a Department of Defense school located in North Carolina. 39
(3) Eligible institution of higher education. – An institution of higher education 40
that does both of the following: 41
a. Has demonstrated the ability to collaborate with public school units 42
located near the Research Triangle region of the State, including 43
Chapel H ill Carrboro City Schools, Cumberland County Schools, 44
Durham Public Schools, Wake County Schools, and Orange County 45
Schools. 46
b. Has a formal partnership with the United States Department of 47
Defense related to research or workforce development. 48
(4) Institution of higher education. – A constituent institution of The University 49
of North Carolina, a community college located in this State, or an eligible 50
private postsecondary institution as defined in G.S. 116-280(3). 51
General Assembly Of North Carolina Session 2025
House Bill 1142-First Edition Page 3
SECTION 2.(c) Eligibility; Applications. – Any eligible institution of higher 1
education may apply to the Collaboratory for a grant to develop an educational program with an 2
eligible high school in the 2026 -2027 academic year to facilitate student engagement with 3
quantum computing and other emergin g technologies. Grants may be awarded to eligible 4
institutions of higher education in amounts of up to fifty thousand dollars ($50,000) per eligible 5
institution of higher education. 6
SECTION 2.(d) Use of Funds. – Funds awarded to an eligible institution of higher 7
education pursuant to the Program shall be used to provide opportunities for high school students 8
to gain hands -on experience, mentorship, and exposure to career pathways in science, 9
technology, engineering, and mathematics that are related to curr ent issues in quantum 10
computing and related emerging technologies. Permissible uses of these funds include student 11
stipends, program administration, mentorship, and research participation costs related to any of 12
the following: 13
(1) Internships, especially m entored research internships aligned with 14
Department of Defense initiatives. 15
(2) Research assistant positions or applied research opportunities, including 16
research connected to workforce development and innovation priorities in the 17
State. 18
(3) Laboratory-based research, especially as related to defense technology or 19
cybersecurity. 20
SECTION 2.(e) Report. – No later than February 15, 2027, the Collaboratory shall 21
report the following information to the Joint Legislative Education Oversight Committee and the 22
Fiscal Research Division: 23
(1) Number and amounts of grants awarded. 24
(2) Identities of the institutions of higher education receiving grants. 25
(3) Identities of public school units and Department of Defense schools working 26
with institutions of higher education receiving grants. 27
(4) Identities of institutions of higher education that applied for grants but did not 28
receive one. 29
(5) The impact of the Program on student success. 30
SECTION 2.(f) Appropriation. – There is appropriated from the General Fund to the 31
Board of Governors of The University of North Carolina the sum of two hundred thousand dollars 32
($200,000) in nonrecurring funds for the 2026 -2027 fiscal year to be allocated to the North 33
Carolina Collaboratory to award grants pursuant to the Quantum Computing Grant Program 34
established pursuant to this section. 35
SECTION 2.(g) This section becomes effective July 1, 2026. 36
37
PART III. INCOME TAX CREDIT FOR CERTAIN BUSINESSES 38
SECTION 3.(a) Part 2 of Article 4 of Chapter 105 of the General Statutes is amended 39
by adding a new section to read: 40
"§ 105-153.12. Tax credit for eligible businesses. 41
(a) Definitions. – The following definitions apply in this section: 42
(1) Eligible business. – A business that (i) is in the defense, technology, 43
computing, cybersecurity, or quantum sector, or that has a service line in 44
quantum computing, (ii) is subject to income tax under this Article, and (iii) 45
has eligible expenses. 46
(2) Eligible expenses. – Costs invested by an eligible business into collaborative 47
or experiential learning opportunities with North Carolina high school 48
students, during the school year or through summer programs, that: 49
a. Comply with all relevant State and federal nondiscrimination laws. 50
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1142-First Edition
b. Offer high school students the opportunity to utilize lab space, 1
computing power, or incorporate expertise and resources not typically 2
available to high school student s into an applied learning project that 3
will either (i) increase student interes t in quantum computing careers 4
or (ii) better prepare students to succeed in a quantum computing 5
program or quantum computing career after graduating high school. 6
(b) Credit. – A taxpayer that is an eligible business is allowed a credit against the tax 7
imposed by this Part in an amount equal to the taxpayer 's eligible expenses , not to exceed one 8
hundred thousand dollars ($100,000). 9
(c) Aggregate Limitation. – The total amount of credits allowed pursuant to this section 10
may not exceed in the aggregate ten mi llion dollars ($10,000,000) for all taxpayers for any one 11
calendar year. 12
(d) Application. – An eligible business claiming a credit under this section shall submit 13
an application for the credit to the Department for approval no later than December 15 of the 14
taxable year for which the credit is claimed. Applications shall be accepted on a first -come, 15
first-served basis. The Department shall create the application required under this section, which 16
shall require, at a minimum, proof of the applicant business's eligible expenses. The Department 17
shall review and approve applications submitted to it under this section by March 1 of the year 18
following the year in which the application was submitted. If the credit amounts for a taxable 19
year exceed the maximum aggregate limit of credits allowed under this section, the tax credit s 20
must be allocated among the eligible businesses who filed a timely application on a first -come, 21
first-served basis upon the amounts otherwise allowed by this section. 22
(e) Report. – By June 30 of each year, the Department shall report (i) the number of 23
applications it received during the pr evious calendar year , (ii) the number of applications it 24
approved during the previous calendar year, and (iii) the total dollar amount of tax credits allowed 25
to eligible businesses during the previous calendar year to the Joint Legislative Committee on 26
Governmental Operations and the Fiscal Research Division." 27
SECTION 3.(b) This section is effective for taxable years beginning on or after 28
January 1, 2027. 29
30
PART IV. EFFECTIVE DATE 31
SECTION 4. Except as otherwise provided, this act is effective when it becomes 32
law. 33