Senate Majority Leader Chuck Schumer, a New York Democrat, on July 19 introduced a trimmed-down package to promote semiconductor manufacturing and economic competitiveness through tax credits for the industry, earning a green light from Republicans to begin debate.
“This has been bipartisan work in the Senate at its best,” Schumer said in remarks on the Senate floor.
The bill would establish a 25% investment tax credit for investments in semiconductor manufacturing and include incentives for manufacturing chips as well as specialized tooling equipment required to make them. Taxpayers could elect to treat the credit as a payment against tax, or “direct pay.” The credit is provided for property placed in service after December 31, 2022, and for which construction begins before January 1, 2027.
Schumer said he plans to schedule a vote before the August recess with the expectation that the House of Representatives would follow suit. Speaker Nancy Pelosi, Democrat of California, praised the revised package in a letter to House members on July 20 and said the chamber could act before it leaves for the August recess late next week.
“As the Senate undergoes its legislative process, we are optimistic that the House will be able to take this bill up as early as next week,” Pelosi said.
Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. Sign up for a free 7-day trial today.
