S. 1642

119 S1642 IS: Strengthening Essential Manufacturing and Industrial Investment Act
 U.S. Senate
 2025-05-07
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  II
  119th CONGRESS
  1st Session
  S. 1642
  IN THE SENATE OF THE UNITED STATES
  May 7, 2025
  Mrs. Blackburn  (for herself,  Mr. Bennet ,  Mr.
  Tillis , and  Mr. Coons )
  introduced the following bill; which was read twice and referred to the
  Committee on
  Finance
  A BILL
To amend the Internal Revenue Code of 1986 to expand the advanced
  manufacturing investment credit to include materials integral to semiconductor
  manufacturing.
1.
Short title
This Act may be cited as the   Strengthening Essential Manufacturing and Industrial Investment Act   or the   SEMI Investment Act  .
2.
Expansion of advanced manufacturing
  investment credit
(a)
In general
Paragraph (3) of  section 48D(b)  of the Internal Revenue Code of 1986 is amended to read as follows:
(3)
Advanced manufacturing facility
(A)
In general
For purposes of this section, the term  advanced manufacturing facility  means a facility for which the primary purpose is the manufacturing of—
(i)
semiconductors,
(ii)
semiconductor manufacturing equipment, or
(iii)
semiconductor materials.
(B)
Semiconductor materials
(i)
In general
For purposes of this paragraph, the term  semiconductor materials  means—
(I)
any direct production material, or
(II)
any indirect production material,
  which is used in
  semiconductor manufacturing (as defined in section 231.116 of
  title 15, Code of Federal Regulations).
(ii)
Direct production material
For purposes of this subparagraph, the term  direct production material  means a material which is—
(I)
primarily used for, and integral to, the production of a semiconductor,
(II)
physically incorporated into a finished semiconductor, and
(III)
any of the following:
(aa)
Substrate
Any substrate of silicon, silicon carbide, gallium nitride, gallium arsenide, indium phosphide, or other semiconductor-grade substrate material.
(bb)
Thin film or layering material
Any deposited metal, dielectric, barrier material, or dopant that forms the physical structure of a semiconductor.
(cc)
Packaging substrate material
Any ceramic, organic, or metallic material that forms the physical base for semiconductor packaging.
(dd)
Bonding, interconnect, or adhesive material
Any wire bond, solder bump, lead frame, die attach adhesive, underfill, or other material which—
(AA)
forms electrical connections within a semiconductor, or
(BB)
provides structural integrity within a semiconductor.
(iii)
Indirect production
  material
(I)
In general
For purposes of this subparagraph, the term  indirect production material  means a material which is—
(aa)
a specialized material that is primarily used for, and integral to, the production, testing, inspection, or packaging of a semiconductor,
(bb)
not physically incorporated into a finished semiconductor, and
(cc)
any of the following:
(AA)
Process chemicals
An etchant, deposition precursor, doping gas, or other chemical used in wafer fabrication.
(BB)
Photolithography material
A photoresist, photoresist ancillary material, developer, mask, or pellicle used in semiconductor patterning.
(CC)
Cleaning,
  planarization, and preparation material
A solvent, surfactant, slurry, Chemical Mechanical Planarization (CMP) pad, conditioning disk, or cleaning agent used to prepare and maintain semiconductor manufacturing surfaces.
(DD)
Testing and
  inspection material
A probe card, test socket, or optical inspection material.
(EE)
Packaging
  process material
A mold compound, encapsulant, or bonding wire used in assembly processes.
(FF)
Fluid-,
  gas-, or wafer-handling material
A polymer, elastomer, ceramic material and resultant tubings, fittings, vessels, filters, seals, or other such chemical-handling or wafer-handling material.
(GG)
Wafer
  processing chamber materials
Any process chamber materials used in production that play an active role in energy transmission, heat dissipation, plasma resistance, or chemical resistance.
(HH)
Other
  material
Any other material identified by the Secretary pursuant to subclause (II).
(II)
Other indirect production materials
For purposes of item (cc)(HH) of subclause (I), the Secretary (in consultation with the Secretary of Commerce) shall identify additional materials which are described in items (aa) and (bb) of such subclause.
(III)
Exclusion
The term  indirect production material  shall not include any material which—
(aa)
has a generic use, and
(bb)
is predominately used in an application other than semiconductor manufacturing.
(iv)
List of semiconductor materials
(I)
In general
Not later than 180 days after the date of enactment of the  Strengthening Essential Manufacturing and Industrial Investment Act , and annually thereafter, the Secretary, in consultation with the Secretary of Commerce, shall publish a list that sets forth the specifications, characteristics, and applications of materials that qualify as direct production materials and indirect production materials for purposes of clauses (ii) and (iii).
(II)
Petition for interim
  determination
In the case of any material which has not been included on the most recent list under subclause (I), a taxpayer may file a petition (at such time, and in such form and manner, as the Secretary may prescribe) with the Secretary for a determination of whether such material qualifies as a direct production material or indirect production material for purposes of clauses (ii) and (iii).
  .
(b)
Effective date
The amendment made by this section shall apply to property placed in service after the date of enactment of this Act.