What is an Advanced manufacturing investment credit?

The advanced manufacturing investment credit under IRC Section 48D provides a federal tax credit on qualified investments in U.S. semiconductor manufacturing facilities and semiconductor equipment manufacturing facilities. Created by the CHIPS and Science Act of 2022, the One Big Beautiful Bill Act raised the rate to 25 percent for property placed in service after December 31, 2025, and to 35 percent for property placed in service after December 31, 2025. Construction must begin by December 31, 2026, or no credit applies. There is no dollar cap. Pair it with AI-driven R&D tax credits to maximize total tax savings on domestic semiconductor manufacturing.

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