President Trump has said he plans to impose tariffs of “25%, 50% or even 100%” on foreign-produced computer chips and semiconductors. His goal is to coerce chip manufacturers to relocate to the United States. A bipartisan group of lawmakers is considering a different strategy. They’re calling for expanded tax incentives for domestic investments by reintroducing the Semiconductor Technology Advancement and Research (STAR) Act. (The bill was first introduced last year.) The proposed legislation would provide a 25% tax credit for semiconductor design research and development expenditures. It would also extend the Sec. 48D advanced manufacturing investment credit for another decade. Stay tuned.
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