• Join your peers at SSTI's 2024 Annual Conference!

    Join us December 10-12 in Arizona to connect with and learn from your peers working around the country to strengthen their regional innovation economies. Visit ssticonference.org for more information and to register today.

  • Become an SSTI Member

    As the most comprehensive resource available for those involved in technology-based economic development, SSTI offers the services that are needed to help build tech-based economies.  Learn more about membership...

  • Subscribe to the SSTI Weekly Digest

    Each week, the SSTI Weekly Digest delivers the latest breaking news and expert analysis of critical issues affecting the tech-based economic development community. Subscribe today!

New guidance released on CHIPS tax credit for semiconductor manufacturing

June 22, 2023

The U.S. Department of the Treasury released new proposed regulations this week that, together with draft guidance published in March, define how semiconductor companies can take advantage of the advanced manufacturing investment tax credit created as part of the CHIPS & Science Act. This credit is equal to 25% of the capitalized costs of tangible property used to manufacture semiconductors or semiconductor manufacturing equipment placed in service after 2022, and the credit is refundable, meaning that companies posting a loss can still receive its full value. In evaluating the cost of the legislation, the Congressional Budget Office expected more than $24 billion in claims for the credit. The latest proposed guidance defines elective payment procedures, which are intended to help companies receive the credit’s financial benefits more quickly. Comments on the rule are due by August 14.

chips, semiconductors