SEMI Applauds Inclusion of Advanced Manufacturing Investment Credit in New Bill


Reading time ( words)

SEMI, the industry association serving the global electronics design and manufacturing supply chain, today applauded the inclusion of an Advanced Manufacturing Investment Credit in the Build Back Better reconciliation bill. A minimum credit of 5%, increasing to 25% if certain conditions are met, would be provided for buildings and equipment to manufacture semiconductors and semiconductor tooling equipment if the facility commences construction before January 1, 2027.

“SEMI is thrilled that a semiconductor manufacturing tax credit for the production of chips and semiconductor tools has been included in the Build Back Better reconciliation bill,” said Ajit Manocha, SEMI president and CEO. “This credit will provide a strong incentive for the production of semiconductors and semiconductor manufacturing equipment in the United States and make the U.S. more competitive in this vital industry. We thank President Joe Biden, Senate Finance Committee Chairman Ron Wyden for his leadership and determination to include this provision, and the original co-sponsors of the FABS Act.”

“We look forward to working with Congress to pass this bill and fund the CHIPS Act programs, which together will further strengthen the semiconductor supply chain in the United States, help U.S. policies keep pace with incentive proposals around the world, and create thousands of high-skill jobs,” Manocha said. “The inclusion of semiconductor tool manufacturing facilities is particularly important, as lead times and demand for new tools grow. In addition, the delayed requirement to amortize research expenses and the maintenance of the Foreign-Derived Intangible Income deduction are other important elements that will preserve and improve the competitiveness of the industry in the United States.” 

The Advanced Manufacturing Investment Credit is a modified, temporary version of the Facilitating American-Built Semiconductors (FABS) Act (S.2107). The credit included in the reconciliation bill retains important features of the FABS Act credit, including an election to receive the tax credit as a direct payment, for investments in semiconductor manufacturing facilities and equipment, as well as facilities and equipment to produce semiconductor manufacturing tools.

Share

Print


Suggested Items

Worldwide Semiconductor Equipment Billings at $13.3 Billion in 2Q19; Down 20%

09/12/2019 | SEMI
Worldwide semiconductor manufacturing equipment billings reached $13.3 billion in the second quarter of 2019, down 20% from the same quarter of 2018 and 3% from than the previous quarter.

Seeking a New Generation of Light-based Sensing Systems

12/07/2015 | DARPA
Find a way to replace a large, heavy and expensive technology with an equivalent one that’s a lot smaller, lighter and cheaper and you have a shot at turning a boutique technology into a world changer. Think of the room-sized computers of the 1940s that now are outpowered by the run-of-the-mill central processing units in laptop computers.



Copyright © 2021 I-Connect007. All rights reserved.