SEMI Investment Act

Semiconductor investment tax credit

If enacted, this bill would expand the advanced manufacturing investment credit to cover semiconductor production. It would treat factories that mainly make semiconductors, semiconductor equipment, or semiconductor materials as qualifying advanced manufacturing facilities. It would add clear definitions of qualifying semiconductor materials. Direct materials would include items like silicon and other substrates, thin films, packaging bases, and bonding or interconnect materials. Indirect materials would include process chemicals, photolithography supplies, cleaning and testing materials, wafer-handling parts, and similar items. The bill would exclude materials that have a generic use and are mainly used outside semiconductor work. The Treasury Secretary, with Commerce, would publish a list of qualifying materials within 180 days and update it every year. Taxpayers could petition for a ruling on materials not on the list. These rules would apply to property placed in service after the date of enactment.