ny rep aims to boost chip production with new tax credit bill

2025-05-02 general

washington, Friday, 2 May 2025.
Representative Claudia Tenney introduced a bill to increase the advanced manufacturing tax credit from 25% to 35%. The bill extends the credit through 2030. This aims to incentivize domestic chip production. The legislation supports facilities like the Micron plant in Clay, New York. The Micron facility deal was finalized in December 2024. It promised a $100 billion investment into central New York. Despite some criticism, bipartisan support remains strong. Representative John Mannion is a co-sponsor of the bill.

chips act expansion

The proposed legislation, named the Building Advanced Semiconductors Investment Credit (BASIC), aims to increase the advanced manufacturing investment tax credit from 25% to 35% [1][2]. It also extends the availability of the credit through December 31, 2030 [1]. This expansion seeks to further encourage investments in domestic semiconductor production facilities and foster job growth in science, technology, engineering, and manufacturing sectors [1]. The current 48D investment tax credit, authorized by the CHIPS Act, is set to expire in 2026 [5].

economic impact and job creation

New York business leaders are advocating for the protection of the CHIPS and Science Act, highlighting its significant impact on the upstate economy [5]. The CHIPS Act has spurred substantial federal investments in New York, including a $100 billion microchip megafactory in Onondaga County and a $315 million expansion to a Corning plant [5]. The Business Council of New York reports that Micron’s investment alone is expected to bring 50,000 new jobs to central New York [5]. Overall, the CHIPS Act has driven over $110 billion in investments across the United States since its inception [5].

investor confidence and market influence

The proposed tax credit increase and extension could bolster investor confidence in semiconductor companies like Micron [1][2]. By lowering the tax burden and incentivizing domestic production, the bill may make these companies more attractive to investors [1]. This could lead to increased stock values and further investments in the semiconductor industry [alert! ‘this is speculative, based on general investment principles’]. Taiwan is also implementing its own chip fab incentives, allowing local firms to claim 25% of their R&D expenses as tax credits, a move that boosted TSMC and United Microelectronics Corp. shares [6].

national security implications

Representative Tenney emphasized that domestically produced semiconductors are crucial for national security [1]. Amid global competition and concerns over reliance on foreign suppliers, incentivizing domestic chip production aims to reduce supply chain vulnerabilities [6]. This focus on national security could further drive government support and investment in the semiconductor industry, benefiting companies that establish or expand their manufacturing presence in the United States [1]. Governments worldwide are offering incentives for domestic chip production to reduce reliance on Taiwan for advanced semiconductors [6].

Bronnen

chip production tax credit