This bill adds certain semiconductor design spending to the existing advanced manufacturing investment tax credit. It would let eligible taxpayers claim a credit equal to 25% of qualified semiconductor design expenditures in a taxable year. The bill also keeps a 25% credit for qualified investments in advanced manufacturing facilities. "Qualified semiconductor design expenditures" include in-house design expenses (wages for qualified services, supplies, and under rules the right to use computers) and contract design expenses (amounts paid to nonemployees for design). The bill limits qualifying design to activities that are experimental and aimed at new or improved function, performance, reliability, or quality, and it excludes spending for style, routine testing, market research, or post‑production design in most cases. The credit applies only to design work done in the United States and cannot be counted toward the separate research tax credit under section 41. The credit for design expenditures applies to amounts paid or incurred after enactment and ends for such expenditures after December 31, 2036.
No publicly available information on projected costs to the federal government. The bill would allow a 25% tax credit for qualified semiconductor design expenditures and continues a 25% credit for qualified advanced manufacturing facility investments.
No publicly available information.
No publicly available information.