SEMI Investment Act
- Bill Number
- H.R. 6055
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-11-17: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-05-20T08:08:28Z
AI-Generated Summary
Purpose
The Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act) aims to encourage investment in U.S. semiconductor production by expanding and extending a tax credit for advanced manufacturing facilities. It modifies the Internal Revenue Code to broaden eligibility for the credit, specifically including facilities that produce semiconductors, related equipment, and essential materials used in their manufacturing.
Key Provisions
- Definition of Advanced Manufacturing Facility: Updates the term to cover facilities primarily focused on manufacturing semiconductors, semiconductor manufacturing equipment, or semiconductor materials.
- Semiconductor Materials Breakdown:
- Direct Production Materials: Items physically incorporated into the final semiconductor, such as substrates (base materials like silicon), thin films or layering materials (e.g., metals or dielectrics forming the structure), packaging substrates (e.g., ceramics or metals for housing), and bonding or interconnect materials (e.g., wires or adhesives for electrical connections or structural support).
- Indirect Production Materials: Specialized items used in production, testing, inspection, or packaging but not incorporated into the final product, including process chemicals (e.g., etchants or gases), photolithography materials (e.g., photoresists for patterning), cleaning agents, testing tools (e.g., probe cards), packaging compounds, handling materials (e.g., tubings or seals), and chamber materials (e.g., for energy or chemical resistance). Excludes generic materials mainly used outside semiconductor manufacturing.
- Secretary's Role: The Secretary of the Treasury, in consultation with the Secretary of Commerce, must publish an annual list of qualifying materials (within 180 days of enactment and yearly thereafter), detailing their specifications and uses. Taxpayers can petition for interim determinations on unlisted materials.
- Extension of Credit Period: Extends the availability of the advanced manufacturing investment credit (under Section 48D) from December 31, 2026, to December 31, 2031.
- Effective Dates: Amendments apply to property placed in service after the date of enactment. The credit extension applies to construction beginning after December 31, 2026.
Significant Changes to Existing Law
- Expands the scope of Section 48D(b)(3) of the Internal Revenue Code by adding "semiconductor materials" as a qualifying category for advanced manufacturing facilities, with detailed definitions for direct and indirect materials—previously, the focus was narrower on semiconductors and equipment without explicit material inclusions.
- Prolongs the credit's expiration by five years, allowing more time for investments that qualify for the tax incentive.
- Introduces administrative mechanisms, like the annual materials list and petition process, to clarify and adapt eligibility over time.
Potential Impacts
- On Government Agencies: Increases administrative workload for the Treasury Department (handling petitions and lists) and requires coordination with the Commerce Department; may boost tax revenue indirectly through economic growth in targeted sectors.
- On Citizens and Businesses: Provides tax incentives that could lower costs for investing in semiconductor facilities, potentially creating jobs and stimulating domestic manufacturing; benefits U.S.-based companies by making production more competitive.
- On International Relations: Supports U.S. efforts to reduce reliance on foreign semiconductor supply chains, potentially strengthening national security and economic independence without directly affecting trade relations.
Main Stakeholders Affected
- Semiconductor Manufacturers and Suppliers: Companies producing chips, equipment, or materials (direct and indirect) gain expanded access to tax credits, encouraging facility investments.
- Investors and Taxpayers: Businesses and individuals funding qualifying projects benefit from the extended credit, which offsets investment costs.
- Government Entities: Treasury and Commerce Departments handle implementation; broader economy sees potential job growth and innovation in tech sectors.
- Workers: Employees in manufacturing, testing, and related fields may experience increased opportunities in the U.S. semiconductor industry.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances clarity in tax code application through definitions and processes, reducing ambiguity in credit eligibility; allows for ongoing updates via Secretary determinations, providing flexibility without needing new legislation.
- Constitutional: No apparent challenges, as it involves standard congressional authority over taxation and economic incentives under Article I, Section 8.
- Political: Aligns with broader U.S. policies to bolster domestic semiconductor production (e.g., amid global supply chain concerns), potentially influencing industrial policy debates; the bill's bipartisan introduction suggests cross-party support for economic security measures.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzpatrick, Brian K. [R-PA-1]
Cosponsors (7)
Rep. Boyle, Brendan F. [D-PA-2], Rep. Golden, Jared F. [D-ME-2], Rep. McBride, Sarah [D-DE-At Large], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Morelle, Joseph D. [D-NY-25], Rep. Tenney, Claudia [R-NY-24], Rep. Moore, Blake D. [R-UT-1]
Recent Actions
- 2025-11-17: Referred to the House Committee on Ways and Means.
- 2025-11-17: Introduced in House
- 2025-11-17: Introduced in House
Bill Versions
- Strengthening Essential Manufacturing and Industrial Investment Act — issued 2025-11-17 — PDF (9 pages)