Us Congress House Bill HB9183

Us Congress 2023-2024 Regular Session

• Introduced: 7/30/24
• Refer: 7/30/24

Caption

STAR Act of 2024 Semiconductor Technology Advancement and Research Act of 2024

Impact

If enacted, the bill would allow eligible taxpayers to claim a 25% credit on qualified semiconductor design expenditures in addition to existing investment credits for advanced manufacturing facilities. This could significantly encourage investments in semiconductor design, thus potentially leading to advancements in product innovations and manufacturing processes. Additionally, the measure is expected to attract more firms to engage in semiconductor research and development in the United States, addressing concerns over domestic capabilities in this critical industry.

Summary

House Bill 9183, titled the Semiconductor Technology Advancement and Research Act of 2024 (STAR Act), proposes amendments to the Internal Revenue Code of 1986. Specifically, the bill aims to enhance the advanced manufacturing investment credit by including qualified semiconductor design expenditures. This change reflects a growing emphasis on stimulating technological development within the semiconductor industry to bolster the nation's manufacturing capabilities and competitive edge in global markets.

Contention

Opponents may raise concerns regarding the implications of expanding tax credits, suggesting that such measures could lead to increased government spending without guaranteed returns on investment. Furthermore, discussions may center around whether it effectively incentivizes domestic production or simply provides tax relief to firms without robust commitments to American manufacturing. Proponents, however, argue that investing in semiconductor technology is vital for national security and economic stability, particularly in a climate where global supply chains have proven vulnerable.