On July 28, the House of Representatives passed the CHIPS and Science Act of 2022 (H.R. 4346), a semiconductor manufacturing bill that includes more than $52 billion for U.S. companies producing computer chips. Already approved by the Senate, the bill will go to President Biden, who is expected to sign it.
The bill includes a 25% tax credit for companies that invest in semiconductor manufacturing plants, with incentives for investment in factories that make chips, in addition to investment in facilities that manufacture specialized tooling equipment needed to produce chips.
The credit may be used for property placed in service after December 31, 2022, and for construction that begins before January 1, 2027.
Taxpayers can choose to use the credit as a payment against their tax, or direct pay.
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