The Senate Finance Committee’s draft reconciliation bill would increase the CHIPS and Science Act’s Advanced Manufacturing Investment Credit (CHIPS ITC) from 25% to 30%. The Biden Treasury Department originally gave companies a 25% CHIPS ITC in October 2024.
The increase is intended to give chipmakers further incentive to break ground on new facilities before a December 31, 2026 deadline to begin construction. Companies that start projects by the end of next year can continue to claim the CHIPS ITC for continuous construction after that date—a policy designed to get sites up a running while recognizing that chips factories take years to build.