Strengthening Essential Manufacturing and Industrial Investment Act; SEMI Investment Act
Summary
The Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act) aims to bolster the semiconductor industry by extending the advanced manufacturing investment credit and broadening its scope to include materials integral to semiconductor manufacturing. This bill amends the Internal Revenue Code of 1986, specifically section 48D(b), to define and incorporate 'semiconductor materials' into the advanced manufacturing facility definition. The Act also extends the credit period to December 31, 2031.
Expected Effects
The Act is likely to incentivize investment in semiconductor manufacturing within the United States by providing tax credits for advanced manufacturing facilities and the materials they use. This could lead to increased domestic production of semiconductors and related materials. The expansion and extension of the advanced manufacturing investment credit aims to reduce reliance on foreign semiconductor suppliers.
Potential Benefits
- Increased domestic semiconductor production.
- Job creation in the manufacturing sector.
- Reduced reliance on foreign semiconductor suppliers.
- Stimulation of innovation in semiconductor technology.
- Strengthened national security through a more robust domestic semiconductor industry.
Potential Disadvantages
- Potential for increased government debt due to tax credits.
- Possible market distortions due to government subsidies.
- Complexity in defining and identifying qualifying 'semiconductor materials'.
- Risk of unintended consequences or loopholes in the tax code.
- The benefits may disproportionately favor large corporations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. By incentivizing domestic manufacturing of semiconductors, the bill could be argued to promote the general welfare and national security. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).