The Commerce Department released its plan for implementing the AGC-backed CHIPS Act, that will build and expand upon semiconductor manufacturing plants across the country.
On September 6, the U.S. Department of Commerce unveiled its plan for implementing the AGC-backed CHIPS Act that will provide tens of billions of dollars for the building, improvement, and expansion of semiconductor manufacturing plants across the nation. Commerce has $39 billion in total construction incentives.
For example, the Department’s CHIPS program includes initiatives seeking proposals within six months for:
- The construction or expansion of leading-edge logic and memory manufacturing facilities totaling up to $28 billion; and
- The construction or expansion of manufacturing capacity for mature and current generation chips totaling up to $10 billion.
Additional funds for these projects are expected to come from the CHIPS Act’s advanced manufacturing investment tax credit (ITC) to be implemented by the Internal Revenue Service (IRS). The ITC is equal to 25 percent of the value of qualified investments in buildings and other eligible depreciable tangible property for advanced manufacturing facilities that have a primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. The ITC is available for projects that start construction between January 1, 2023, and December 31, 2026.
AGC will continue to conduct outreach to the Commerce Department and IRS as they implement these initiatives. The Department of Commerce previously worked with AGC and many of its chapters to prepare for implementation of the CHIPS Act nearly a year before its enactment.
For more information, contact Jimmy Christianson at [email protected].
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