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Chip Makers Find Out How to Get 25% Investment Tax Credit
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WASHINGTON—The Biden administration moved to implement a new 25% investment tax credit for U.S.-based semiconductor manufacturing and proposed restrictions that would make it difficult for companies to expand China operations if they receive certain federal funds.
Congress created the tax credit and chip-maker subsidies last year as part of a package aimed at boosting U.S. competitiveness in semiconductors. The legislation came in response to a chip shortage during parts of the pandemic and to concerns about relying on other nations for such components.
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