U.S. Sens. Mike Crapo (R-ID) and Ron Wyden (D-OR), the chairman and ranking member of the Senate Finance Committee, reaffirmed their commitment to extending the Advanced Manufacturing Investment Credit (CHIPS ITC).
The Advanced Manufacturing Investment Credit was created by the CHIPS and Science Act of 2022 during the Biden Administration. It is based on Crapo and Wyden’s Facilitating American-Built Semiconductors Act, introduced in 2021.
“The Advanced Manufacturing Investment Credit is a critical tool for strengthening domestic semiconductor supply chains, creating good-paying jobs and advancing our national security interests,” Crapo and Wyden said. “Since its enactment in 2022, the tax credit has spurred significant investments across the United States, including in Idaho and Oregon. As Chairman and Ranking Member of the Finance Committee, we are committed to working with our colleagues in the House and Senate to extend this vital incentive and ensure the U.S. remains a global leader in semiconductor manufacturing.”
Without congressional action, the CHIPS ITC will not apply to property built after Dec. 31, 2026. This would increase the cost of manufacturing semiconductors and semiconductor manufacturing equipment. This, in turn, would make it harder for America to compete for private investment, manufacturing jobs, and chip production.
The senators cited the tax credit’s role in strengthening domestic semiconductor manufacturing, creating jobs and advancing U.S. national security.