Bill > S2005

This bill introduces an excise tax credit specifically designed to incentivize semiconductor companies to establish or expand their operations in the state. The bill defines an "eligible semiconductor company" as a corporation primarily focused on researching, developing, or manufacturing semiconductor devices, microprocessors, or memory chips, which establishes a new facility or expands an existing one in the state. To qualify, the company must create at least 15 net new jobs and commit to retaining those jobs for a minimum of 5 years. The bill modifies the existing tax credit structure, allowing eligible semiconductor companies to receive a more generous tax credit than other corporations. Specifically, while non-semiconductor companies can claim 100% credit on their first $25,000 of excise and 75% credit on amounts over $25,000, eligible semiconductor companies can claim 100% credit on their first $25,000 and 95% credit on amounts exceeding $25,000. The bill also requires the revenue commissioner to issue new regulations within 8 months to implement these changes, ensuring clear guidelines for how the tax credit will be applied to semiconductor companies.

Budget and Finance

https://malegislature.gov/Bills/194/S2005