BASIC ACT

This bill boosts a federal tax credit to encourage building advanced chip factories and related equipment in the U.S. It raises the credit from 25% to 35%, making these projects cheaper to build. It also keeps the credit available longer, moving the cutoff from the end of 2026 to the end of 2030. The changes apply to property put in service after the bill becomes law. Together, these updates aim to speed up semiconductor manufacturing and related advanced production in America.

Key points:

• Who is affected: Companies investing in advanced manufacturing, especially semiconductor facilities and equipment.
• What changes: Tax credit rate increases from 25% to 35%.
• How long: Credit window extended through December 31, 2030.
• When it starts: Applies to property placed in service after the law is enacted.