Inaugural Insights: Taking Heed of CHIPS Act Final Regulations

The Creating Helpful Incentives to Produce Semiconductors Act of 2022 (CHIPS Act), Pub. L. No. 117-167, § 107, was signed into law by President Biden on August 9, 2022. With the goal of incentivizing semiconductors and semiconductor manufacturing within the United States by implementing an advanced manufacturing investment credit, the CHIPS Act provides a credit that is equal to 25% of the qualified investment for the taxable year in an advanced manufacturing facility of an eligible taxpayer, as set forth in I.R.C. § 48D.  This practice note explains final regulations under Section 48D issued in October 2024.

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