US Chip Industry Win Hinges on Lucrative Tax Credit (Podcast)

More of the supply chain that helps create semiconductor chips wants in on a lucrative new tax credit aimed at boosting US competitiveness against China.

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As of now under IRS proposed rules, companies that manufacture materials or chemicals supplied to the manufacturing of semiconductors or equipment don’t qualify for the 25% tax credit from the 2022 CHIPS Act.

Bloomberg Tax’s Erin Slowey speaks with Tymon Daniels, vice president of tax for Corning Inc., a US materials science company that is the parent company of Hemlock Semiconductor, about the congressional intent of who should be able to qualify and the importance of having the direct-pay option, where the industry can get cash in lieu of the tax credit.

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