SEMI Investment Act

This bill amends the Internal Revenue Code to extend and expand the advanced manufacturing investment credit for semiconductor-related facilities. It broadens the definition of eligible facilities to include those manufacturing semiconductor materials, and extends the credit period by five years.

Sec. 2, Expansion and extension of advanced manufacturing investment credit: The bill redefines an 'advanced manufacturing facility' to include facilities primarily for manufacturing semiconductors, semiconductor manufacturing equipment, or semiconductor materials. It defines 'semiconductor materials' as direct production materials (such as substrates, thin films, packaging substrates, and bonding materials that are physically incorporated into a finished semiconductor) and indirect production materials (such as process chemicals, photolithography materials, cleaning materials, testing materials, packaging materials, fluid-handling materials, and wafer processing chamber materials that are specialized and integral to semiconductor production but not physically incorporated). Indirect production materials exclude materials with generic uses predominantly outside semiconductor manufacturing. The Secretary of the Treasury, in consultation with the Secretary of Commerce, must publish a list of qualifying materials within 180 days of enactment and annually thereafter, and taxpayers may petition for interim determinations on unlisted materials. The credit period is extended from December 31, 2026, to December 31, 2031. The amendments generally apply to property placed in service after enactment, but the credit period extension applies to property whose construction begins after December 31, 2026.