The US Treasury announced Tuesday new tax credits to incentivize investments in facilities that either manufacture semiconductors or semiconductor manufacturing equipment, according to a release
WASHINGTON (Pakistan Point News / Sputnik - 21st March, 2023) The US Treasury announced Tuesday new tax credits to incentivize investments in facilities that either manufacture semiconductors or semiconductor manufacturing equipment, according to a release.
"Today, Treasury is taking steps that will mobilize investments in American semiconductor manufacturing, spurring job growth innovation for generations to come," said Secretary of the Treasury Janet Yellen in the release.
The proposed credit would generally be equal to 25% of a taxpayer's qualified investment in a relevant facility. The credit would be available for facilities that began construction after enactment of the CHIPS Act last August and placed in service after December 31, 2022.
The regulations include a claw-back measure of the full value of the credit if, within 10 years, the taxpayer or its affiliates engages in a significant transaction that materially expands the semiconductor manufacturing capacity of the taxpayer in a foreign country of concern.
