An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Internal Revenue Code of 1986

The main body of federal tax law in the United States.

Advanced Manufacturing Investment Credit (Section 48D)

A specific tax credit available to companies that invest in certain advanced manufacturing facilities.

Semiconductor

A material or device, like a computer chip, that conducts electricity more than an insulator but less than a pure conductor, forming the basis of modern electronics.

Qualified Semiconductor Design Expenditures

The specific costs a company pays for designing computer chips, including wages, supplies, and computer use, which would be eligible for a tax credit under this bill.

Taxable Year

The annual accounting period for which a person or company files income tax returns, typically the calendar year or a fiscal year.

In-house semiconductor design expenses

Costs a company pays directly for its own employees and resources to design computer chips, such as salaries and materials.

Contract design expenses

Costs a company pays to another business or individual (not an employee) to perform computer chip design work on its behalf.