ACC Welcomes Bipartisan House Legislation to Expand Eligibility for Tax Credits Under the Chips and Science Act

WASHINGTON (November 17, 2025) - The American Chemistry Council (ACC) issued the following statement in support of the Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act, which would expand tax incentives for semiconductor facilities to include essential upstream materials supplies. The bipartisan legislation was introduced by Representatives Brian Fitzpatrick (R-PA) and Brendan Boyle (D-PA). Earlier this year Senators Marsha Blackburn (R-TN), Thom Tillis (R-NC), Michael Bennet (D-CO), and Chris Coons (D-DE) reintroduced an ACC-supported Senate version, the Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act (S. 1642).

"ACC welcomes House introduction of the SEMI Investment Act and commends Representatives Fitzpatrick and Boyle for their initiative on this vital issue for the U.S. economy. This bipartisan legislation will help ensure that essential chemistries and materials can meaningfully contribute to semiconductor manufacturing in the United States. It will support supply chain resiliency and America's ability to compete with countries like China. We urge prompt passage by the House.

"U.S. chemical manufacturers have been key to the semiconductor industry since its inception and continue to be critical to its success. According to the semiconductor industry, it takes no fewer than 500 highly specialized chemicals to manufacture one semiconductor chip.

"ACC participated in the Department of the Treasury's rulemaking process for implementing the Advanced Manufacturing Investment Tax Credit (Section 48D of the Internal Revenue Code) established by the CHIPS and Science Act of 2022. In our comments on Treasury's Notice of Proposed Rulemaking, we pointed out that while the proposal incentivized semiconductor manufacturing, it failed to support the production of essential upstream materials.

"We believe Congress intended for Treasury and the IRS to broadly interpret 'semiconductor manufacturing equipment' when issuing guidance as to how the Section 48D tax credit should be applied. We had urged Treasury to harmonize the tax credit with the U.S. Department of Commerce interpretation such that it would include facilities whose primary purpose is producing materials integral and essential to manufacturing semiconductors.

"We believe Treasury's final regulations, while they reflect some improvements to eligibility for the tax credit, do not fully address the problem. Our nation must prioritize incentives to enhance domestic supply chain resiliency, including fully leveraging the tax credit that Congress provided. This legislation is a smart, pro-growth solution.

"A stronger, more competitive nation starts with American chemistry."

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