Us Congress Senate Bill SB5604

Us Congress 2023-2024 Regular Session

Caption

A bill to amend the Internal Revenue Code of 1986 to expand the advanced manufacturing investment credit to include materials integral to the manufacturing of semiconductors or semiconductor manufacturing equipment.

Impact

If enacted, SB5604 would enhance the existing framework of tax credits under the Internal Revenue Code related to advanced manufacturing. By including additional materials necessary for semiconductor production, it aligns with broader federal initiatives aimed at strengthening the domestic semiconductor supply chain. This could potentially lead to increased investment in U.S. manufacturing capabilities, fostering job growth and innovation in this critical sector of the economy.

Summary

SB5604, also known as the 'Strengthening Essential Manufacturing and Industrial Investment Act' or the 'SEMI Investment Act', aims to amend the Internal Revenue Code of 1986 to expand the advanced manufacturing investment credit. This expansion includes materials that are integral to the manufacturing of semiconductors and semiconductor manufacturing equipment. The bill seeks to promote growth in the semiconductor industry by incentivizing investments in facilities that manufacture these essential components.

Contention

Although the bill is primarily focused on investment incentives, it may face scrutiny regarding its potential implications on competition and market dynamics within the semiconductor industry. Concerns may arise over how tax incentives could disproportionately favor large corporations at the expense of smaller entities. Additionally, the focus on materials integral to semiconductor manufacturing could spark discussions about environmental and regulatory implications of increased production activities.