President signs CHIPS legislation that includes advanced investment tax credit for semiconductor manufacturing

President Biden signed into law “The CHIPS and Science Act of 2022.”

Includes advanced investment tax credit for semiconductor manufacturing

President Biden today signed into law H.R. 4346, “The CHIPS and Science Act of 2022.” The date of enactment, therefore, is August 9, 2022.

Read text of the legislation [PDF 986 KB] (393 pages)

Division A (the division referred to as the “CHIPS Act”) includes a 25% advanced investment tax credit (ITC) for certain investments in semiconductor manufacturing.

  • Eligible investments include investments in the manufacturing of semiconductors, as well as in the manufacturing of the specialized tooling equipment required in the semiconductor manufacturing process.
  • Eligible taxpayers may elect to treat the credit as a payment against tax (“direct pay”). The credit generally is available for qualifying property placed in service after December 31, 2022, for which construction begins before January 1, 2023.

Read an August 2022 report providing an overview of the investment tax credit: TaxNewsFlash


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