US Chip Industry Win Hinges on Lucrative Tax Credit

More of the supply chain that helps create semiconductor chips wants in on a lucrative new tax credit aimed at boosting US competitiveness against China. As of now under IRS proposed rules, companies that manufacture materials or chemicals supplied to the manufacturing of semiconductors or equipment don't qualify for the 25% tax credit from the 2022 CHIPS Act. Bloomberg Tax’s Erin Slowey speaks with Tymon Daniels, vice president of tax for Corning Inc., a US materials science company that is the parent company of Hemlock Semiconductor, about the congressional intent of who should be able to qualify and the importance of have the direct pay option— where the industry can get cash in lieu of the tax credit. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.