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Standard Summary
Comprehensive overview in 1-2 paragraphs
The Building Advanced Semiconductors Investment Credit Act (BASIC ACT) would amend the Internal Revenue Code to boost the Advanced Manufacturing Investment Credit (AMIC), also known as Section 48D credit. Specifically, it would raise the credit rate from 25% to 35% of the eligible investment and extend the period during which the credit can be claimed from property placed in service through December 31, 2030 (instead of December 31, 2026). The amendments apply to property placed in service after enactment. The bill’s title and provisions indicate a focus on advancing U.S. semiconductor manufacturing and related high-technology production capacity by making investments in qualifying manufacturing property more financially attractive.
Key Points
- 1Increases the AMIC rate from 25% to 35%.
- 2Extends the credit-eligible period to December 31, 2030 (from December 31, 2026).
- 3Applies to property placed in service after the enactment of the bill.
- 4Amends Section 48D(a) and Section 48D(e) of the Internal Revenue Code.
- 5Labeled as the Building Advanced Semiconductors Investment Credit Act (BASIC ACT), signaling a focus on semiconductor manufacturing investments.
Impact Areas
Primary group/area affected- U.S. manufacturers investing in advanced manufacturing equipment, particularly in semiconductor fabrication and related capacity.Secondary group/area affected- Taxpayers (corporate and potentially certain individuals) who utilize the AMIC for eligible property investments; tax planners and accounting professionals assisting with AMIC claims.Additional impacts- Potential reduction in federal tax revenue due to a larger, longer-lasting investment credit.- Encouragement of domestic capital investment in high-tech manufacturing may influence job creation, supply chain resilience, and regional economic activity around semiconductor hubs.- Administrative considerations for IRS guidance and compliance related to qualifying property and eligible expenditures.
Generated by gpt-5-nano on Nov 18, 2025