The IRS and Treasury’s proposed rules on a tax credit included in the CHIPS Act are favorable for partnerships and S corporations interested in starting chip manufacturing projects, tax practitioners say.
The rules, released last week, allow pass-throughs to receive a direct payment for the advanced manufacturing investment credit at the entity level, including companies that have both active and passive investors. Normally, pass-throughs with passive investors wouldn’t be allowed to receive the benefits of tax credits due to long-standing passive activity loss rules in the US tax code.
More inclusive rules will bring into the fold larger investment ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.