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H.R. 802119th CongressIn committeeLatest action Jan 28, 2025Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
The STAR Act of 2025 would give a 25% tax credit for semiconductor design expenses in the U.S., through 2036.
45-second read · 4 questions answered below
HR 802, the STAR Act of 2025, expands an existing chip manufacturing tax credit to also cover chip design work, offering a 25% credit for U.S.-based design costs like wages, supplies, computing resources, and contractor payments. It defines qualifying design work and bars companies from claiming both this credit and a separate research credit for the same expenses. The credit applies to spending after enactment and expires for expenses or construction after December 31, 2036.
The bill affects semiconductor companies of all sizes, from large manufacturers to smaller design firms and startups. It could also indirectly affect American engineers and tech workers, and taxpayers generally.
By lowering the cost of U.S.-based chip design, the bill could shift design work away from overseas locations. The tax credit also reduces the amount of tax revenue collected from affected companies.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.