On Oct. 22, US Treasury issued final rule on semiconductor industry.
US Treasury, US IRS issued final rules for the Advanced manufacturing investment credit (CHIPS ITC) created in the Biden-Harris Administration’s CHIPS and science act.
Incentivizing investments in facilities manufacture semiconductors and equipment.
Final Rule
Implement advanced manufacturing investment credit established by CHIPS Act of 2022 to incentivize the manufacture of semiconductors, related equipment within US.
Adopts rules proposed in 1 of 2 notices of proposed rulemaking to implement credit. Other than proposed rules regarding elective payment election that were addressed in the final rule adopted in connection with the second notice of proposed rulemaking.
Provide eligibility requirements for credit, special 10-year credit recapture rule; applies if there is significant transaction re material expansion of semiconductor capacity.
Final rule affects taxpayers that claim the advanced manufacturing investment credit.
