,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #gajd  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #af1 #bjbb,mr4   
,mc,caul 7= himself1 ,ms4 ,matsui1 ,mr4 
,kelly ( ,p5nsylvania1 ,ms4 ,del,bene1  
,ms4 ,/efanik1 ,mr4 ,kildee1 ,mr4       
,katko1 ,ms4 ,slotk91 & ,mr4 ,meij]7    
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% ! semiconductor
 manufactur+ inve/m5t cr$it4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,facilitat+ ,am]ican-,built             
,semiconductors ,act or ! ,,fabs ,act4  
#b4 ,semiconductor manufactur+ inve/m5t 
cr$it  7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv
 ( sub*apt] ,a ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #dh;,c ! foll[+ new       
section3  #dh;,d4 ,semiconductor        
manufactur+ inve/m5t cr$it  7a7 ,9 g5]al
 ,= purposes ( section #df1 !           
semiconductor manufactur+ inve/m5t cr$it
 = any taxable ye> is an am\nt equal to 

! sum (-- 7#a7 #be p]c5t ( ! qualifi$   
inve/m5t = su* taxable ye> ) respect to 
any semiconductor manufactur+ facility  
prop]ty1 &  7#b7 #be p]c5t ( ! qualifi$ 
semiconductor design exp5ditures paid or
 incurr$ dur+ ! taxable ye>4  7b7       
,qualifi$ inve/m5t ) respect to         
semiconductor manufactur+ facility      
prop]ty  7#a7 ,9 g5]al ,= purposes (    
subsection 7a77#a71 ! qualifi$ inve/m5t 
) respect to any semiconductor          
manufactur+ facility prop]ty = any      
taxable ye> is ! basis ( any qualifi$   
prop]ty plac$ 9 s]vice by ! taxpay] dur+
 su* taxable ye> :i* is "p ( any        
semiconductor manufactur+ facility      
prop]ty4  7#b7 ,qualifi$ prop]ty ,=     
purposes ( ?is subsection1 ! t]m        
qualifi$ prop]ty means prop]ty-- 7,a7   
:i* is tangible prop]ty 7includ+ a      
build+ or its /ructural compon5ts7 :i*  
is an integral "p ( any semiconductor   
manufactur+ facility prop]ty1  7,b7 )   
respect to :i* depreciation 7or         
amortization 9 lieu ( depreciation7 is  

all[able1  7,c7 :i* is--  7i7 con/ruct$1
 recon/ruct$1 or erect$ by ! taxpay]1 or
  7ii7 acquir$ by ! taxpay] if ! orig9al
 use ( su* prop]ty comm5ces ) ! taxpay]1
 &  7,d7 ! prim>y purpose ( :i* is to   
manufacture or process1 or p]=m rese>* )
 respect to1 semiconductors or          
semiconductor tool+ equipm5t4  7#c7     
,semiconductor manufactur+ facility     
prop]ty ,= purposes ( ?is subp>t1 ! t]m 
semiconductor manufactur+ facility      
prop]ty means a facility = :i* ! prim>y 
purpose is ! fabrication1 assembly1 te/+
 & packag+ ( semiconductor *ips2        
semiconductor manufactur+ equipm5t us$ 9
 ^! & relat$ processes su* z            
mat]ial-h&l+ & photomask+2 or associat$ 
metrology1 mat]ial-h&l+ & o!r relat$    
tools4  7#d7 ,coord9ation )             
rehabilitation cr$it ,! qualifi$        
inve/m5t ) respect to any semiconductor 
manufactur+ facility prop]ty = any      
taxable ye> %all n include t portion ( !
 basis ( any prop]ty :i* is attributable
 to qualifi$ rehabilitation exp5ditures 

7z def9$ 9 section #dg7;c77#b774  7c7   
,qualifi$ semiconductor design          
exp5ditures ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,except z o!rwise provid$ 
9 ?is subsection1 ! t]m qualifi$        
semiconductor design exp5ditures means !
 am\nts :i* are paid or incurr$ by !    
taxpay] dur+ ! taxable ye> :i* w\ld be  
describ$ 9 subsection 7b7 ( section #da 
if su* subsection 7 appli$ ) !          
modifications set =? 9 p>agraph 7#c74   
7#b7 ,exclusion = am\nts fund$ by       
grants1 etc ,! t]m qualifi$             
semiconductor design exp5ditures %all n 
include any am\nt to ! ext5t su* am\nt  
is fund$ by any grant1 contract1 or     
o!rwise by ano!r p]son 7or any          
gov]nm5tal entity74  7#c7 ,modifications
 ,= purposes ( p>agraph 7#a71 subsection
 7b7 ( section #da %all be appli$-- 7,a7
 by sub/itut+ semiconductor rese>* =    
qualifi$ rese>* ea* place x appe>s 9    
p>agraphs 7#b7 & 7#c7 ( ea* subsection1 
7,b7 by sub/itut+ #ajj p]c5t = #fe p]c5t
 9 p>agraph 7#c77;,a7 ( su* subsection1 

&  7,c7 by sub/itut+ #ajj p]c5t = #ge   
p]c5t 9 p>agraph 7#c77;,c77i7 ( su*     
subsection4  7#d7 ,semiconductor rese>* 
,! t]m semiconductor rese>* means any   
rese>* relat$ to design+ or develop+ a  
semiconductor product1 includ+ qualifi$ 
semiconductor manufactur+ prop]ty1 t is 
at lea/ "o g5]ation beyond ! taxpay]'s  
mo/ advanc$ comm]cially available       
product 7or ! fir/ g5]ation if no su*   
product exi/s74  7d7 ,coord9ation )     
cr$it = increas+ rese>* exp5ditures     
7#a7 ,9 g5]al ,except z provid$ 9       
p>agraph 7#b71 any qualifi$             
semiconductor design exp5ditures = :i* a
 cr$it is all[$ "u ?is section %all n be
 tak5 into acc\nt = purposes ( det]m9+ !
 cr$it all[able "u section #da = su*    
taxable ye>4  7#b7 ,exp5ditures includ$ 
9 det]m9+ increase to rese>* activities 
,any qualifi$ semiconductor design      
exp5ditures = any taxable ye> :i* are   
qualifi$ rese>* exp5ses 7)9 ! mean+ (   
section #da7;b77 %all be tak5 into      
acc\nt 9 det]m9+ ! base am\nt or !      

av]age qualifi$ rese>* exp5ses1 :i*ev]  
is applicable1 = purposes ( apply+      
section #da to subsequ5t taxable ye>s4  
,su* qualifi$ semiconductor design      
exp5ditures %all n be tak5 into acc\nt =
 purposes ( section #da7;f77#c74  7e7   
,special rules  7#a7 ,c]ta9 progress    
exp5diture rules made ,applicable ,rules
 simil> to ! rules ( subsections 7c77#d7
 & 7d7 ( section #df 7z 9 effect on !   
day be=e ! date ( ! enactm5t ( ! ,rev5ue
 ,reconciliation ,act ( #aiij7 %all     
apply = purposes ( subsection 7a74  7#b7
 ,aggregation & ,allocation (           
,exp5ditures ,rules simil> to ! rules ( 
p>agraphs 7#a7 & 7#b7 ( section #da7;f7 
%all apply = purposes ( ?is section4    
7f7 ,election = direct paym5t  7#a7 ,9  
g5]al ,9 ! case ( any qualifi$ prop]ty  
or semiconductor manufactur+ prop]ty    
plac$ 9 s]vice dur+ any taxable ye> 7) !
 exception ( any su* prop]ty to :i*     
subsection 7g77#a7 appli$771 or 9 ! case
 ( any qualifi$ semiconductor design    
exp5ditures paid or incurr$ dur+ !      

taxable ye>1 ! am\nt ( any cr$it det]m9$
 "u subsection 7a7 ) respect to su*     
prop]ty or su* exp5ditures = su* taxable
 ye> %all1 at ! election ( ! taxpay]1 be
 treat$ z a paym5t equal to su* am\nt   
:i* is made by ! taxpay] aga9/ ! tax    
impos$ by *apt] #a = su* taxable ye>    
7reg>dless ( :e!r su* tax w\ld h be5 on 
su* taxpay]74  7#b7 ,=m & effect (      
election ,an election "u p>agraph 7#a7  
%all be made prior to ! date on :i* !   
qualifi$ prop]ty or semiconductor       
manufactur+ prop]ty is plac$ 9 s]vice or
 ! la/ day ( ! taxable ye> 9 :i* !      
qualifi$ semiconductor design           
exp5ditures are paid or incurr$ & 9 su* 
mann] z ! ,secret>y may prescribe4 ,su* 
election1 once made1 %all-- 7,a7 be     
irrevocable ) respect to ! qualifi$     
prop]ty1 semiconductor manufactur+      
prop]ty1 or qualifi$ semiconductor      
design exp5ditures to :i* su* election  
applies1 &  7,b7 r$uce ! am\nt ( ! cr$it
 :i* w\ld 7b = ?is subsection7 be       
all[able "u ?is section ) respect to su*

 prop]ty or su* exp5ditures = ! taxable 
ye> 9 :i* su* prop]ty is plac$ 9 s]vice 
to z]o4  7#c7 ,application to p>tn]%ips 
& s corporations ,9 ! case ( a p>tn]%ip 
or ,s corporation :i* makes an election 
"u p>agraph 7#a7--  7,a7 su* p>agraph   
%all apply ) respect to su* p>tn]%ip or 
corporation )\t reg>d to ! fact t no tax
 is impos$ by *apt] #a on su* p>tn]%ip  
or corporation1 &  7,b7 7i7 9 ! case ( a
 p>tn]%ip1 ea* p>tn]'s di/ributive %>e (
 ! cr$it det]m9$ "u subsection 7a7 )    
respect to ! qualifi$ prop]ty1          
semiconductor manufactur+ prop]ty1 or   
qualifi$ semiconductor design           
exp5ditures %all be deem$ to be z]o1 &  
7ii7 9 ! case ( a ,s corporation1 ea*   
%>ehold]'s pro rata %>e ( ! cr$it       
det]m9$ "u subsection 7a7 ) respect to  
su* prop]ty %all be deem$ to be z]o4    
7g7 ,recapture  7#a7 ,9 g5]al ,if !re is
 a recapture ev5t ) ! respect to !      
cr$its all[$ "u ?is section to any      
taxpay]1 ! tax impos$ on su* taxpay] by 
?is *apt] = ! taxable ye> :i* includes !

 date ( su* recapture ev5t %all be      
increas$ by ! am\nt ( su* cr$its4  7#b7 
,recapture ev5t ,= purposes ( ?is       
subsection1 ! t]m recapture ev5t means1 
) respect to ! cr$its all[$ "u ?is      
section to any taxpay]1 ! fir/ date on  
:i* any ( ! foll[+ has occurr$3 7,a7    
,any semiconductor manufactur+ facility 
prop]ty ) respect to :i* any su* cr$it 0
 all[$ is transf]r$ to a =eign entity ( 
conc]n 7z def9$ 9 section #iija ( !     
,william ,m4 7,mac7 ,?ornb]ry ,national 
,def5se ,au?orization ,act = ,fiscal    
,ye> #bjba7 or an entity "u ! influ5ce1 
control1 or own]%ip ( su* a =eign entity
 ( conc]n4  7,b7 ,=eign entities (      
conc]n 7z s def9$7 or entities "u !     
influ5ce1 control1 or own]%ip ( su*     
=eign entities ( conc]n acquire a       
controll+ int]e/ 9 ! taxpay]4  7h7      
,regulations & guidance ,! ,secret>y    
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    

guidance ) respect to--  7#a7 det]m9+ ! 
basis ( qualifi$ prop]ty & semiconductor
 manufactur+ prop]ty1  7#b7 any su*     
measures z are deem$ appropriate to     
avoid abuse or fraud ) respect to !     
cr$it all[$ "u ?is section1  7#c7 ensur+
 t su* cr$it is n all[$ to multiple     
taxpay]s1 &  7#d7 c>ry+ out ! purposes (
 subsection 7g71 includ+ provid+ = !    
recapture ( ! cr$it all[$ "u ?is section
 if ! c]tification describ$ 9 su*       
subsection is false4  7i7 ,t]m9ation ,no
 cr$it %all be det]m9$ "u ?is section = 
any prop]ty plac$ 9 s]vice1 or any      
qualifi$ semiconductor design           
exp5ditures paid or incurr$1 aft]       
,decemb] #ca1 #bjcb4  4  7b7 ,con=m+    
am5dm5ts  7#a7 ,section #df ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$--  7,a7 
by /rik+ & at ! end ( p>agraph 7#e71    
7,b7 by /rik+ ! p]iod at ! end (        
p>agraph 7#f7 & ins]t+ 1 &1 &  7,c7 by  
add+ at ! end ! foll[+ new p>agraph3    
7#g7 ! semiconductor manufactur+        
inve/m5t cr$it4  4  7#b7 ,section       

#di7;a77#a77;,c7 ( su* ,code is am5d$-- 
7,a7 by /rik+ & at ! end ( clause 7iv71 
7,b7 by /rik+ ! p]iod at ! end ( clause 
7v7 & ins]t+ a comma1 & 7,c7 by add+ at 
! end ! foll[+ new clauses3  7vi7 !     
basis ( any qualifi$ prop]ty 7z def9$ 9 
section #dh;,d7b77#b77 :i* is "p ( a    
semiconductor manufactur+ facility1 &   
7vii7 ! basis ( any semiconductor       
manufactur+ prop]ty4  4  7#c7 ,section  
#ej7;a77#b77;,e7 ( su* ,code is am5d$ by
 /rik+ or #dh;,c7b77#b7 & ins]t+        
#dh;,c7b77#b71 or #dh;,d7f77#a74  7#d7  
,section #ei;,a7b77#a77;,b77ii7 ( su*   
,code is am5d$-- 7,a7 9 subclause 7,i71 
by /rik+ plus1  7,b7 by r$esignat+      
subclause 7,,ii7 z subclause 7,,iii71 & 
7,c7 by ins]t+ aft] subclause 7,i7 !    
foll[+3  7,,ii7 ! cr$it all[$ "u section
 #ch = ! taxable ye> :i* is prop]ly     
allocable to ! portion ( ! inve/m5t     
cr$it det]m9$ "u section #df t is       
prop]ly allocable to section #dh;,d7a71 
plus  4  7#e7 ,! table ( sections =     
subp>t ,e ( "p ,,iv ( sub*apt] ,a (     

*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #dh;,c !  
foll[+ new item3  ,sec4 #dh;,d4         
,semiconductor manufactur+ inve/m5t     
cr$it4  4  7c7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to prop]ty plac$ 9 s]vice aft] ,decemb] 
#ca1 #bjbb1 & to qualifi$ semiconductor 
design exp5ditures paid or incurr$ aft] 
,decemb] #ca1 #bjbb1 "u rules simil> to 
! rules ( section #dh7m7 ( ! ,int]nal   
,rev5ue ,code ( #aihf 7z 9 effect on !  
day be=e ! date ( ! enactm5t ( ! ,rev5ue
 ,reconciliation ,act ( #aiij74