The One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, expanded the 48D “Advanced Manufacturing Investment Credit” from 25 percent to 35 percent and extended it to construction that begins by the end of 2026.

Done: Extend the Semiconductor-Sector Investment Credit

The CHIPS Act tax credit powered America's chip resurgence and letting it expire would stall the momentum.

U.S. Semiconductor Manufacturing Tax Credits Need To Be Extended and Broadened

Accelerating the construction of semiconductor facilities requires thinking in terms of “let’s get it done,” not “let’s cover every base and limit every liability.”

The CHIPS Program Office Needs to Think Like Economic Developers, Not Bankers

Congress should create tax credits for SMEs and original equipment manufacturers (OEMs) to encourage investment in SME and supplier digitalization. 

To Do: Create Tax Credits for SME and Supplier Digitalization

ITIF applauds both the Biden administration and U.S. Congress for articulating and advancing the Creating Helpful Incentives to Produce Semiconductors (“CHIPS”) for America Act, which has been passed out of the Senate and House in largely similar form in their respective U.S. Innovation and Competition Act (USICA) and America COMEPTES Act.

Comments to the US Commerce Department on Incentives, Infrastructure, and R&D for a Strong Semiconductor Industry

Congress should expand the refundable R&D credit to allow pre-profit start-ups to cover payroll taxes.

Partly Done: Expand the R&D Credit for Pre-Profit Start-Ups

Congress should pass legislation similar to the CHIPS Act to support new biomedical production facilities in the United States.

To Do: Pass a CHIPS Act for the Biopharma Industry

ITIF applauds this important step toward passing much-needed legislation to bolster the competitive position of America’s semiconductor industry, and calls on Congress to pass this legislation and bring it to the President’s desk within a week.

ITIF Urges Passage of the CHIPS-Plus Act to Bolster U.S. Competitiveness

ITIF outlines several steps Congress should take to strengthen the credit.

Partly Done: Create a Super CHIPS Credit

Recommendation

Details

Update

Editors’ Recommendations

Twelve Tax Reforms to Spur Innovation and Competitiveness

The Hamilton Index: Assessing National Performance in the Competition for Advanced Industries

Related

Done: Extend the Semiconductor-Sector Investment Credit

U.S. Semiconductor Manufacturing Tax Credits Need To Be Extended and Broadened

The CHIPS Program Office Needs to Think Like Economic Developers, Not Bankers