The IRS guidance made it clear: while these payments help fund the construction of advanced manufacturing facilities, the taxpayer remains responsible for completing the project on their own behalf.
A Strategic Advantage for Semiconductor Companies
This confirmation from the IRS is a crucial step for companies seeking to capitalize on both the CHIPS incentives program and the advanced manufacturing tax credit. By confirming the eligibility of semiconductor development projects for the tax credit, the IRS provides companies with a dual financial benefit—one from the CHIPS funding and another from the tax credit, both of which can ease the significant costs of building cutting-edge manufacturing plants.
As the semiconductor industry continues to grow and expand, these new tax benefits and incentives play a pivotal role in shaping the future of advanced manufacturing in the U.S.
