Bipartisan legislation recently reintroduced in the U.S. House of Representatives would create an investment tax credit for semiconductor design expenditures.
The Semiconductor Technology Advancement and Research (STAR) Act would allow for a 25 percent tax credit for semiconductor design research and development expenditures. Semiconductor design enables increasingly complex technologies to work by improving how chips process information. The bill also reauthorizes the 48D manufacturing tax credit for the next 10 years.
The bill’s goal is to advance semiconductor research and development initiatives and to ensure semiconductors originate in the United States. It would amend the advanced manufacturing investment credit to add qualified semiconductor design expenditures.
“Semiconductors are the linchpin to the technologies of the future in countless sectors, from health care to defense to energy, and they are critical to U.S. national security and global competitiveness,” U.S. Rep. Blake Moore (R-UT), who reintroduced the bill, said. “I thank my colleagues for their partnership in reintroducing the STAR Act, and I look forward to the investment incentives this bill will bring to enhance U.S. leadership in chip design and maintain a secure value chain for these innovations.”
The bill has 13 co-sponsors and was referred to the House Committee on Ways and Means.