Congress quietly raises semiconductor tax credit, locks in 4 more years of subsidy

What it does

This bill increases the federal tax credit for advanced semiconductor manufacturing from 25% to 35% of eligible investment costs, and extends the program's expiration date from December 31, 2026 to December 31, 2030. The higher credit and longer timeline make it more attractive for companies to build or expand semiconductor fabrication plants in the United States.

Why we flagged it

The bill's sole operative mechanism is to increase and extend a tax credit for semiconductor manufacturers. It is a straightforward, openly stated tax expenditure—not hidden, but narrowly beneficial to one industry sector.

What the text implies

• The 4-year extension (2026→2030) locks in federal revenue loss through 2030 without requiring Congress to revisit or reauthorize the program, reducing legislative oversight.
• No wage, employment, or domestic-supply conditions are attached; manufacturers can claim the credit regardless of where workers are hired or whether output serves U.S. needs.
• The credit applies retroactively to property 'placed in service after the date of enactment,' potentially capturing investments already underway, creating a windfall for early movers.
• Increasing the credit from 25% to 35% may crowd out other manufacturing incentives or reduce fiscal space for non-corporate public investment.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill provides a direct tax subsidy to semiconductor manufacturers with no offsetting revenue source, public benefit requirement, or performance condition. While semiconductor manufacturing may have strategic value, the bill transfers federal revenue to a capital-intensive industry without requiring job creation, wage standards, domestic supply commitments, or other public returns—making it corporate welfare at taxpayer expense.

Who stands to gain

• semiconductor manufacturers
• integrated device manufacturers (IDMs)
• foundries with U.S. operations

Named in the bill

Internal Revenue Code Section 48D, semiconductor manufacturing industry, U.S. Treasury

Where it stands

23 cosponsors: 13 Democrats, 10 Republicans.

• May 5, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 5, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 4 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $990,000 in lobbying spend. A filing names 6 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

Claudia Tenney, the sponsor, reported $1,189,908 in PAC receipts in the 2026 cycle. $2,500 of that came from 1 PAC tied to these lobbying clients.

• Semiconductor Industry Association — $460,000 on 1 filing
• Broadcom Inc — $420,000 on 1 filing
• Applied Materials, Inc. — $110,000 on 2 filings

Lobbying Disclosure Act filings through Jul 18, 2026. A filing shows who paid to lobby on a bill it names, not what changed.