Congress should extend the semiconductor-sector investment tax credit introduced in the CHIPS Act through the end of the decade.

To Do: Extend the Semiconductor-Sector Investment Credit

U.S. tax policy needs to prioritize innovation and competitiveness—especially as China rapidly gains ground as a leading innovator in advanced industries.

Twelve Tax Reforms to Spur Innovation and Competitiveness

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 make companies’ expenditures on global standards-setting eligible for the R&D tax credit because it contributes to U.S. competitiveness.

To Do: Include Standards-Setting Expenditures in the R&D Credit

Semiconductors represent the foundational industry for the entire global economy. The United States needs to ensure that it fields leading companies across the memory, logic, and analog subsectors, and that it maintains sufficient domestic semiconductor manufacturing to support its economic and national security needs.

Why America Needs Semiconductor Legislation to Bolster Its Economic and National Security

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

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

Expanding the Research and Development Tax Credit to Drive Innovation, Competitiveness and Prosperity

Congress should work to impose pro-innovation measures like expanding the R&D tax credit.

Genius Loves Company

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

To Do: Create a Super CHIPS Credit

Recommendation

Details

Editors’ Recommendations

Twelve Tax Reforms to Spur Innovation and Competitiveness

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

Related

To Do: Extend the Semiconductor-Sector Investment Credit

Twelve Tax Reforms to Spur Innovation and Competitiveness

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