CHIPS and Science Act presents R&D tax credit opportunity for manufacturers
The CHIPS and Science Act, signed into law earlier this month, includes more than $50 billion in incentives for the manufacturing of semiconductors. The legislation is aimed at boosting the domestic production of semiconductors by incentivizing the construction and expansion of manufacturing facilities or fabrication plants. It also provides a 25% investment tax credit for investments in semiconductor manufacturing and related equipment.
As companies seek to construct or expand these facilities, the associated activities may qualify for federal and state Research & Development (R&D) tax credits. Other activities that may qualify include designing and developing new production methods, tooling, and specialized equipment for fabrication, manufacturing processes, and much more.
Scott Hamilton, CPA, Partner, National Tax
Carina Coffey, Manager, National Tax
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