Signed into law on August 9, 2022 the CHIPS and Science Act appropriates over $52 billion over five years to fund grants. loans, loan guarantees, and other programs to incentivize semiconductor manufacturing in the United States. $39 billion will fund will provide Federal financial assistance to facilities and equipment throughout the United States used for the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.
Available Federal financial assistance can be used for the construction, expansion, or modernization of qualifying facilities, including their roof. An opportunity for qualifying facilities to address issues in their current roof system, proactively provide maintenance for the prevention of roof failure, as well as the expansion of existing facilities.
To qualify for the 25% tax incentive, a company must demonstrate a project that is “tangible property” that is “integral to the operation of the advanced manufacturing facility.” The primary purpose of the manufacturing site must be semiconductors or equipment used to manufacture semiconductors. Office and other administrative buildings are not eligible for the incentive.
The CHIPS+ Act is in effect for fiscal 2022 with $24 billion in funding and is funded through fiscal 2026.
Any company expanding their manufacturing capability in the United States is eligible, and the legislation will pursue “broad geographic diversity” for companies receiving incentives based on a number of factors.