[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1642 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1642
To amend the Internal Revenue Code of 1986 to expand the advanced
manufacturing investment credit to include materials integral to
semiconductor manufacturing.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 7, 2025
Mrs. Blackburn (for herself, Mr. Bennet, Mr. Tillis, and Mr. Coons)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the advanced
manufacturing investment credit to include materials integral to
semiconductor manufacturing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Essential
Manufacturing and Industrial Investment Act'' or the ``SEMI Investment
Act''.
SEC. 2. EXPANSION OF ADVANCED MANUFACTURING INVESTMENT CREDIT.
(a) In General.--Paragraph (3) of section 48D(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(3) Advanced manufacturing facility.--
``(A) In general.--For purposes of this section,
the term `advanced manufacturing facility' means a
facility for which the primary purpose is the
manufacturing of--
``(i) semiconductors,
``(ii) semiconductor manufacturing
equipment, or
``(iii) semiconductor materials.
``(B) Semiconductor materials.--
``(i) In general.--For purposes of this
paragraph, the term `semiconductor materials'
means--
``(I) any direct production
material, or
``(II) any indirect production
material,
which is used in semiconductor manufacturing
(as defined in section 231.116 of title 15,
Code of Federal Regulations).
``(ii) Direct production material.--For
purposes of this subparagraph, the term `direct
production material' means a material which
is--
``(I) primarily used for, and
integral to, the production of a
semiconductor,
``(II) physically incorporated into
a finished semiconductor, and
``(III) any of the following:
``(aa) Substrate.--Any
substrate of silicon, silicon
carbide, gallium nitride,
gallium arsenide, indium
phosphide, or other
semiconductor-grade substrate
material.
``(bb) Thin film or
layering material.--Any
deposited metal, dielectric,
barrier material, or dopant
that forms the physical
structure of a semiconductor.
``(cc) Packaging substrate
material.--Any ceramic,
organic, or metallic material
that forms the physical base
for semiconductor packaging.
``(dd) Bonding,
interconnect, or adhesive
material.--Any wire bond,
solder bump, lead frame, die
attach adhesive, underfill, or
other material which--
``(AA) forms
electrical connections
within a semiconductor,
or
``(BB) provides
structural integrity
within a semiconductor.
``(iii) Indirect production material.--
``(I) In general.--For purposes of
this subparagraph, the term `indirect
production material' means a material
which is--
``(aa) a specialized
material that is primarily used
for, and integral to, the
production, testing,
inspection, or packaging of a
semiconductor,
``(bb) not physically
incorporated into a finished
semiconductor, and
``(cc) any of the
following:
``(AA) Process
chemicals.--An etchant,
deposition precursor,
doping gas, or other
chemical used in wafer
fabrication.
``(BB)
Photolithography
material.--A
photoresist,
photoresist ancillary
material, developer,
mask, or pellicle used
in semiconductor
patterning.
``(CC) Cleaning,
planarization, and
preparation material.--
A solvent, surfactant,
slurry, Chemical
Mechanical
Planarization (CMP)
pad, conditioning disk,
or cleaning agent used
to prepare and maintain
semiconductor
manufacturing surfaces.
``(DD) Testing and
inspection material.--A
probe card, test
socket, or optical
inspection material.
``(EE) Packaging
process material.--A
mold compound,
encapsulant, or bonding
wire used in assembly
processes.
``(FF) Fluid-, gas-
, or wafer-handling
material.--A polymer,
elastomer, ceramic
material and resultant
tubings, fittings,
vessels, filters,
seals, or other such
chemical-handling or
wafer-handling
material.
``(GG) Wafer
processing chamber
materials.--Any process
chamber materials used
in production that play
an active role in
energy transmission,
heat dissipation,
plasma resistance, or
chemical resistance.
``(HH) Other
material.--Any other
material identified by
the Secretary pursuant
to subclause (II).
``(II) Other indirect production
materials.--For purposes of item
(cc)(HH) of subclause (I), the
Secretary (in consultation with the
Secretary of Commerce) shall identify
additional materials which are
described in items (aa) and (bb) of
such subclause.
``(III) Exclusion.--The term
`indirect production material' shall
not include any material which--
``(aa) has a generic use,
and
``(bb) is predominately
used in an application other
than semiconductor
manufacturing.
``(iv) List of semiconductor materials.--
``(I) In general.--Not later than
180 days after the date of enactment of
the Strengthening Essential
Manufacturing and Industrial Investment
Act, and annually thereafter, the
Secretary, in consultation with the
Secretary of Commerce, shall publish a
list that sets forth the
specifications, characteristics, and
applications of materials that qualify
as direct production materials and
indirect production materials for
purposes of clauses (ii) and (iii).
``(II) Petition for interim
determination.--In the case of any
material which has not been included on
the most recent list under subclause
(I), a taxpayer may file a petition (at
such time, and in such form and manner,
as the Secretary may prescribe) with
the Secretary for a determination of
whether such material qualifies as a
direct production material or indirect
production material for purposes of
clauses (ii) and (iii).''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of enactment of this Act.
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