A group of bipartisan lawmakers has introduced new legislation that would seek to advance U.S. semiconductor research and development initiatives by creating an investment tax credit for chip expenditures.
Called the Semiconductor Technology Advancement and Research (STAR) Act, the bill would allow for a 25% tax credit for semiconductor design R&D expenditures. Microelectronics R&D works to improve how semiconductors are manufactured as well as create new innovations to make semiconductor design easier while being more complex.
Semiconductors are increasingly being used in nearly every industry like:
- Defense
- Healthcare
- Energy
- Agriculture
- Transportation
The bill would also help to compete against countries globally that are out investing the U.S. in semiconductor R&D.
According to the Semiconductor Industry Association (SIA), incentives for semiconductor design and R&D would help maintain long-term U.S. chip design leadership. An investment in R&D would help improve America’s overall chip supply chain as well as support training and employment for more than 150,000 jobs across the economy.
“Semiconductors are the lynchpin to the technologies of the future in countless sectors, from health care to defense to energy, and they are critical to U.S. national security and global competitiveness,” said Blake Moore, U.S. Congressman from Utah. “I am proud to introduce the STAR Act with a bipartisan group of colleagues to create an investment incentive to enhance U.S. leadership in chip design and maintain a secure value chain for these innovations.”
Other congressional members introducing the bill include House Foreign Affairs Committee Chairman Michael McCaul (R-TX), Congresswoman Suzan DelBene (D-WA) and Congresswoman Doris Matsui (D-CA). Co-sponsors include chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the Strategic Competition Between the United States and the Chinese Communist Party, Congresswoman Claudia Tenney (R-NY), Congressman Rho Khanna (D-CA) and Congressman Joe Morelle (D-NY).
