Maximize your CHIPS Act tax credits and incentives
The CHIPS and Science Act creates significant opportunities for semiconductor manufacturers and related businesses investing in U.S. production. These federal incentives can substantially reduce your tax burden while supporting your growth plans. At BPM, we help you navigate the complexities of CHIPS Act benefits and optimize your claims for maximum value.
The CHIPS Act delivers meaningful financial benefits through multiple channels. You can access a 25% Advanced Manufacturing Investment Tax Credit (“AMIC”), for property placed in service prior to December 31, 2024, or 35% for property placed in service after December 31, 2025, for qualifying semiconductor facilities and equipment purchases. These incentives specifically target U.S.-based chip manufacturing to strengthen domestic supply chains. If your business is manufacturing semiconductors, producing related equipment, you may qualify for substantial tax savings.
Eligibility assessment and planning: BPM will analyze your capital improvement project expenditures and manufacturing operations to determine potential credit eligibility.
Credit calculation and documentation: BPM will review capital expenditures to determine the potential eligible basis, interview individuals familiar with the manufacturing process, review invoice documentation, and calculate the available credit. Additionally, BPM will compile a technical and process memorandum documenting the applicable law and process applied to determine the credit.
Strategic tax optimization: We integrate CHIPS Act credits with other federal and state incentives to maximize your overall tax benefits. This includes considering cost segregation issues, depreciation issues including additional first year depreciation and new qualified production property (for property where construction began after January 19, 2025) , and state-specific manufacturing incentives to create the most advantageous tax position.
Filing and compliance management: BPM will assist with pre-registration for eligible property in the IRS portal. Additionally, BPM will coordinate all IRS filing requirements and ongoing compliance obligations for your AMIC claimed under Section 48D.
Our tax professionals understand both the technical requirements of semiconductor manufacturing and the intricate details of federal tax incentives. We work regularly with manufacturers, suppliers, and technology companies in the semiconductor industry, giving us deep insight into how AMIC benefits apply to real-world business situations.
You’ll receive personalized attention throughout the entire process. We start with a thorough assessment of your operations and develop a customized strategy that aligns with your business goals. Our team stays current with evolving guidance and requirements, so you benefit from the most up-to-date compliance approaches.
We coordinate seamlessly with your existing tax and accounting teams, providing specialized AMIC knowledge while integrating with your broader tax strategy. This collaborative approach prevents conflicts between different incentive programs and optimizes your overall tax position.
Contact our specialized tax team today to discuss your specific situation and develop a strategy that maximizes your available incentives. We’ll provide a comprehensive assessment of your opportunities and outline clear next steps for claiming your benefits.
Looking for a team who understands where you’re headed and how to help you get there? Whether you’re building something new, managing growth or preserving success, let’s talk.
