U.S. Reps. Michael McCaul (R-TX) and Mike Kelly (R-PA) recently proposed a bill that would provide a comprehensive package of incentives to bolster the design and manufacturing of American-made semiconductor chips.
“Domestic semiconductor manufacturing and R+D are vital to a strong economy and ensuring the US remains in control of our supply chain,” Rep. McCaul tweeted on March 16. “I was proud to introduce the Facilitating American-Built Semiconductors Act, which will boost US production & secure our semiconductor ecosystem.”
Rep. McCaul on March 16 sponsored the bipartisan Facilitating American-Built Semiconductors (FABS) Act, H.R. 7104, to drive long-term investment in the United States for the design and manufacturing of semiconductor chips. Among the members who joined Rep. Kelly as an original cosponsor of the bill are U.S. Reps. Doris Matsui (D-CA), John Katko (R-NY), and Peter Meijer (R-MI).
“This is a matter of national security. Building semiconductor chips here in America strengthens the U.S. supply chain, lessens our reliance on foreign products, and creates more jobs here at home,” said Rep. Kelly, co-chair of the House Auto Caucus. “The auto industry — heavily reliant on semiconductor chips — has been the heart and soul of America for over a century. This pro-growth legislation is a win-win and will help to ensure that can continue for the next century to come.”
If enacted, H.R. 7104 would provide a 25 percent refundable investment tax credit (RITC) to semiconductor companies that invest in manufacturing of the technology in the United States. The RITC could cover building costs for a semiconductor manufacturing facility or the manufacturing equipment to produce the chips, according to information provided by the lawmakers.
Additionally, the bill would provide a 25 percent RITC for companies that invest in the research and design of next-generation semiconductors, the information says.
“With these incentives in place, America will boost its domestic production of semiconductors and move our nation closer to a secure semiconductor ecosystem that will ensure we remain in control of our supply chain,” said Rep. McCaul in a statement. “Semiconductors are vital to a strong economy, and investments in the advancement of this critical technology will bring jobs and help America lead the world in the development of leading-edge design.”
H.R. 7104 has been referred for consideration to the U.S. House Ways and Means Committee.