Bill > HR802

This bill amends the Internal Revenue Code to expand the Advanced Manufacturing Investment Credit by adding qualified semiconductor design expenditures as a new category for tax credits. Specifically, the bill allows eligible taxpayers to claim a 25% tax credit for semiconductor design expenses conducted in the United States, including both in-house design expenses (such as employee wages, supplies, and computer usage) and contract design expenses. The bill defines "qualified semiconductor design" as the development of product design, specifications, or intellectual property for semiconductor manufacturing, focusing on improvements in function, performance, reliability, or quality. The bill excludes design activities related to purely cosmetic factors, post-commercial production design (with some exceptions), duplication of existing products, and routine market research or testing. The tax credit would be available for expenditures made between the bill's enactment and December 31, 2036, and cannot be combined with the existing Research and Development tax credit. The goal appears to be incentivizing domestic semiconductor design and innovation by providing a significant tax benefit for companies investing in this critical technology sector.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/802/all-info