Draft Reconciliation Package Includes Semiconductor Tax Credit

New draft text of the congressional budget reconciliation bill includes a tax credit to incentivize advanced semiconductor manufacturing to help “strengthen” U.S. supply chains, said the Semiconductor Industry Association Thursday. The incentive, included in the reconciliation package released Thursday by congressional Democrats, would create an investment tax credit of up to 25% for advanced manufacturing facilities and for eligible components. It would apply to plants that begin construction before 2027. The credit “would help keep America on top in this foundational technology and strengthen U.S. chip supply chains by boosting domestic semiconductor production and innovation,” said Qorvo CEO Bob Bruggeworth, who chairs SIA's board. The credit was originally part of the Facilitating American-Built Semiconductors (Fabs) Act introduced in June. SIA President John Neuffer said fully funding the Chips Act would "turbocharge American leadership in the game-changing technologies of today and tomorrow.”