Washington, D.C. — TechNet, the national, bipartisan network of technology CEOs and senior executives, today urged Congress to pass a clean, multi-year extension of the Section 48D Advanced Manufacturing Investment Credit. In a letter to congressional leaders, TechNet President and CEO Linda Moore wrote that this tax incentive is key to the continued growth of America’s domestic semiconductor industry and good-paying manufacturing jobs across the country. This tax credit is set to expire at the end of 2026 unless Congress acts.
“Thanks to Congress’ bipartisan efforts over the past few years to bring advanced manufacturing back to America, companies have committed hundreds of billions of dollars to new projects that will create hundreds of thousands of jobs, and we’re producing leading-edge chips here at home for the first time in decades. The Advanced Manufacturing Investment Credit has been an important part of this success story, and Congress should extend it to ensure the continued build-out of announced investments and to further boost the capacity of the U.S. semiconductor industry. Making more chips and other tech inputs in America strengthens our national security, increases the resilience of critical supply chains, and reinforces our global leadership in innovation,” said Linda Moore, TechNet President and CEO.
Last year, Congress increased the Section 48D credit for facilities that manufacture semiconductors or semiconductor manufacturing equipment from 25 percent to 35 percent. Moore highlighted in the letter that this incentive, combined with others in the bipartisan Chips and Science Act, has spurred $828 billion in private investment spread across over 160 projects in 30 states — which taken together are estimated to create over 525,000 direct and indirect jobs across the economy. Given that semiconductor fabrication facilities require multiple years and significant capital for construction, Moore stressed that a clean, multi-year extension of the enhanced 48D credit before its expiration at the end of 2026 is needed to sustain job-creating investments in American semiconductor production.