119-s1642

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1642 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1642

 To amend the Internal Revenue Code of 1986 to expand the advanced 
 manufacturing investment credit to include materials integral to 
 semiconductor manufacturing.

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Strengthening Essential 
Manufacturing and Industrial Investment Act'' or the ``SEMI Investment 
Act''.

SEC. 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.
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