Bill would add 25% tax credit for US chip design work
In committeeH.R. 802Latest action
Sponsor: Blake D. Moore · Representative · UT
AIDecoded by AI · checked against the recordRead the official text
Official title: STAR Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The STAR Act of 2025 would give a 25% for semiconductor design expenses in the U.S., through 2036.
45-second read · 4 questions answered below
What does this do?
HR 802, the STAR Act of 2025, expands an existing chip manufacturing 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.
Who does it affect?
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.
Why does it matter?
By lowering the cost of U.S.-based chip design, the bill could shift design work away from overseas locations. The also reduces the amount of tax revenue collected from affected companies.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedJan 28, 2025
- House committeeYou are here · Jan 28, 2025
- House vote
- Senate
- The president's desk
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.