"New US Tax Credits and Guidance Drive Investment in Energy and Climate Initiatives"
The US Treasury Department and the Internal Revenue Service have released new guidance on how companies can qualify for an "advanced manufacturing investment credit," a key piece of President Biden’s CHIPS and Science Act that was designed to bring semiconductor manufacturing back to the United States. The tax credit would provide a refund of 25% "of an eligible taxpayer's qualified investment in an advanced manufacturing facility." The Congressional Budget Office has estimated that the tax credit alone will pump over $24 billion into the semiconductor industry over the coming decade, amounting to nearly a third of the cost of the entire bill.