The IRS has issued final regulations for manufacturers eligible to make the elective payment election of the advanced manufacturing investment tax credit. This credit was created in 2022 by the CHIPS Act and is intended to incentivize companies to make semiconductors and semiconductor equipment in the United States. The final regulations describe procedures for making the elective payment election, particularly by partnerships and S corporations. They also address excessive payments and basis reduction and recapture. Taxpayers wanting to make the election must first follow the IRS’s pre-filing registration process and receive a registration number. Contact us for assistance.
Our Blog 