,,ii #aagth ,,congress #ast ,session ,s4 #bajg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ag1 #bjba,mr4 ,wyden 7for himself1 ,mr4 ,crapo1 ,mr4 ,warner1 ,mr4 ,cornyn1 ,ms4 ,stabenow1 and ,mr4 ,daines7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish the semiconductor manufacturing investment credit4 #a4 ,short title ,this ,act may be cited as the ,facilitating ,american-,built ,semiconductors ,act or the ,,fabs ,act4 #b4 ,semiconductor ,manufacturing ,investment ,credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,c the following new section3 #dh;,d4 ,semiconductor manufacturing investment credit 7a7 ,in general ,for purposes of section #df1 the semiconductor manufacturing investment credit for any taxable year is an amount equal to the sum of-- 7#a7 #be percent of the qualified investment for such taxable year with respect to any semiconductor manufacturing facility1 and 7#b7 #be percent of the qualified investment for such taxable year with respect to any semiconductor manufacturing property4 7b7 ,qualified investment with respect to semiconductor manufacturing facilities 7#a7 ,in general ,for purposes of subsection 7a77#a71 the qualified investment with respect to any semiconductor manufacturing facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a semiconductor manufacturing facility4 7#b7 ,qualified property ,for purposes of this subsection1 the term qualified property means property-- 7,a7 which is tangible property 7including a building or its structural components7 which is an integral part of a semiconductor manufacturing facility1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 7,c7 which is-- 7i7 constructed1 reconstructed1 or erected by the taxpayer1 or 7ii7 acquired by the taxpayer if the original use of such property commences with the taxpayer1 and 7,d7 which is necessary for the manufacturing or processing of1 or performing research with respect to1 semiconductors or semiconductor tooling equipment4 7#c7 ,semiconductor manufacturing facility ,for purposes of this subpart1 the term semiconductor manufacturing facility means a facility for which the primary purpose is the manufacturing or processing of1 or performing research with respect to1 semiconductors or semiconductor tooling equipment4 7#d7 ,coordination with rehabilitation credit and semiconductor manufacturing property ,the qualified investment with respect to any semiconductor manufacturing facility for any taxable year shall not include that portion of the basis of any property which is-- 7,a7 attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b771 or 7,b7 semiconductor manufacturing property 7as defined in subsection 7c77#b774 7c7 ,qualified investment with respect to semiconductor manufacturing property 7#a7 ,in general ,for purposes of subsection 7a77#b71 the qualified investment with respect to semiconductor manufacturing property for any taxable year is the basis of any semiconductor manufacturing property placed in service by the taxpayer during such taxable year4 7#b7 ,semiconductor manufacturing property ,for purposes of this subpart1 the term semiconductor manufacturing property means tangible property-- 7,a7 for which the primary purpose is to manufacture or process1 or perform research with respect to1 semiconductors or semiconductor tooling equipment1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 and 7,c7 which is-- 7i7 constructed1 reconstructed1 or erected by the taxpayer1 or 7ii7 acquired by the taxpayer if the original use of such property commences with the taxpayer4 7d7 ,certain progress expenditure rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7e7 ,regulations and guidance ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance with respect to-- 7#a7 determining the basis of qualified property and semiconductor manufacturing property1 7#b7 any such measures as are deemed appropriate to avoid abuse or fraud with respect to the credit allowed under this section1 and 7#c7 ensuring that such credit is not allowed to multiple taxpayers4 4 7b7 ,election for direct payment ,section #dh;,d of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a71 is amended by adding at the end the following3 7f7 ,election for direct payment 7#a7 ,in general ,in the case of any qualified property or semiconductor manufacturing property placed in service during any taxable year 7with the exception of any such property to which subsection 7d7 applied771 the amount of any credit determined under subsection 7a7 with respect to such property for such taxable year shall1 at the election of the taxpayer1 be treated as a payment equal to such amount which is made by the taxpayer against the tax imposed by chapter #a for such taxable year 7regardless of whether such tax would have been on such taxpayer74 7#b7 ,form and effect of election ,an election under paragraph 7#a7 shall be made prior to the date on which the qualified property or semiconductor manufacturing property is placed in service and in such manner as the ,secretary may prescribe4 ,such election1 once made1 shall-- 7,a7 be irrevocable with respect to the qualified property or semiconductor manufacturing property to which such election applies1 and 7,b7 reduce the amount of the credit which would 7but for this subsection7 be allowable under this section with respect to such property for the taxable year in which such property is placed in service to zero4 7#c7 ,application to partnerships and ,s corporations ,in the case of a partnership or ,s corporation which makes an election under paragraph 7#a7-- 7,a7 such paragraph shall apply with respect to such partnership or corporation without regard to the fact that no tax is imposed by chapter #a on such partnership or corporation1 and 7,b7 7i7 in the case of a partnership1 each partner's distributive share of the credit determined under subsection 7a7 with respect to the qualified property or semiconductor manufacturing property shall be deemed to be zero1 and 7ii7 in the case of a ,s corporation1 each shareholder's pro rata share of the credit determined under subsection 7a7 with respect to such property shall be deemed to be zero4 4 7c7 ,conforming amendments 7#a7 ,section #df of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking 8and0 at the end of paragraph 7#e71 7,b7 by striking the period at the end of paragraph 7#f7 and inserting 81 and01 and 7,c7 by adding at the end the following new paragraph3 7#g7 the semiconductor manufacturing investment credit4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 by striking 8and0 at the end of clause 7iv71 7,b7 by striking the period at the end of clause 7v7 and inserting a comma1 and 7,c7 by adding at the end the following new clauses3 7vi7 the basis of any qualified property 7as defined in section #dh;,d7b77#b77 which is part of a semiconductor manufacturing facility1 and 7vii7 the basis of any semiconductor manufacturing property4 4 7#c7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,c7b77#b7 and inserting #dh;,c7b77#b71 or #dh;,d7d74 7#d7 ,section #ei;,a7b77#a77;,b77ii7 of such ,code is amended-- 7,a7 in subclause 7,i71 by striking plus1 7,b7 by redesignating subclause 7,,ii7 as subclause 7,,iii71 and 7,c7 by inserting after subclause 7,i7 the following3 7,,ii7 the credit allowed under section #ch for the taxable year which is properly allocable to the portion of the investment credit determined under section #df that is properly allocable to section #dh;,d7a71 plus 4 7#e7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,c the following new item3 #dh;,d4 ,semiconductor manufacturing investment credit4 4 7d7 ,effective date 7#a7 ,in general ,except as provided under paragraph 7#b71 the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjba1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 7#b7 ,election for direct payment ,the amendments made by subsection 7b7 shall be effective with respect to any election made after ,december #ca1 #bjba4