Senate Finance Committee leadership called for an extension of the Advanced Manufacturing Investment Credit, which is available to semiconductor manufacturing facilities through 2026. The ask came amid bipartisan and industry efforts to extend and expand the credit.

Section 48D credit basics

IRC § 48D provides for an Advanced Manufacturing Investment Credit for semiconductor and semiconductor equipment manufacturing facilities. It is available for qualified property, which includes tangible depreciable or amortizable property that is integral to the operation of the advanced manufacturing facility.

The credit was originally established under the 2022 CHIPS and Science Act, which provided a 25% credit for qualified property placed in service after December 31, 2022.

Last year, the One Big Beautiful Bill Act increased the credit to 35% for property that is placed in service after December 31, 2025. However, the OBBB failed to address the § 48D credit’s December 31, 2026, sunset.

To dig deeper, visit the original article on the Thomson Reuters blog.