H.R. 802, the Semiconductor Technology Advancement and Research Act of 2025, expands a federal tax credit by allowing companies to claim a 25 percent investment credit for semiconductor design expenses in addition to the existing advanced manufacturing facility credit. The bill applies to two types of qualifying design costs: in-house expenses (such as employee wages, supplies, and computer usage for U.S.-based semiconductor design work) and contract design expenses paid to outside firms, while explicitly excluding cosmetic design changes, routine quality testing, and market research activities. The credit becomes available immediately upon enactment and continues through December 31, 2036, with the legislation designed to incentivize companies to conduct semiconductor design activities within the United States. This tax incentive primarily benefits semiconductor companies and design firms that invest in developing new or improved semiconductor products, and the bill prevents double-counting of expenses by ensuring design costs claimed under this credit cannot also be claimed under the existing research and development tax credit.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.