Semiconductor Superiority Act

This bill amends the Internal Revenue Code to clarify that the advanced manufacturing investment credit applies to semiconductor manufacturing facilities located in outer space, including low-Earth orbit. It specifies that qualified property for such facilities can include transport vehicles for crew and goods in space, and property not physically in outer space, while excluding rockets or similar launch vehicles. The changes apply to property placed in service after the bill's enactment and do not imply any rule about the credit for facilities in outer space before that date.

Sec. 2, Clarifying application of advanced manufacturing investment credit for semiconductor manufacturing facilities located in outer space: This section adds a new paragraph to the tax code stating that for a facility in outer space, qualified property does not fail to be part of the facility just because it is used to transport crew, goods, or supplies in space, or is not located in outer space. Property does not fail to be qualified property just because it is in outer space. Functions related to manufacturing include flight control, crew habitation, facility repair, and transportation. 'Outer space' includes low-Earth orbit. Qualified property does not include a rocket or similar launch vehicle for propelling a payload from Earth into space. The section also amends other rules to exclude such space-based property from certain tax-exempt use and tax-exempt bond financing rules. These amendments apply to property placed in service after the date of enactment. The bill does not create any inference about the credit for facilities in outer space on or before the enactment date.