H.R. 802In committeeJobs & the economy
Bill would add 25% tax credit for US chip design work
Data as of July 11, 2026
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
Decoded
What does this do?
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.
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 tax credit also reduces the amount of tax revenue collected from affected companies.
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- 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.
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Official title
STAR Act of 2025
- Introduced:
- January 28, 2025
- Latest action:
- January 28, 2025
Referred to the House Committee on Ways and Means.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.