WASHINGTON – The Semiconductor Industry Association this week applauded measures by US legislators to support semiconductor research and development.

The trade group on Wednesday released a statement from president and CEO John Neuffer in support of the introduction of the American Innovation and Jobs Act, bipartisan legislation that would promote semiconductor research and innovation in the US by repealing an R&D tax provision.

“The semiconductor industry is among the most R&D-intensive sectors in the world, and semiconductor innovation is critical to America’s ability to create and lead the game-changing technologies of today and tomorrow. While US semiconductor companies invest about one-fifth of revenue in R&D annually, the US R&D credit is relatively weak compared with our global competitors, and the requirement to amortize R&D expenses will further weaken incentives for research in the US. At a time when federal funding for chip research has been flat as a share of GDP for years, even as the governments of global competitors are massively increasing their research investments, robust tax incentives for private sector research assume even greater importance. We applaud the bipartisan group of leaders in Congress for introducing this timely legislation to promote US R&D, urge its swift enactment, and look forward to working with policymakers to advance semiconductor research in the United States.”

The legislation was introduced in the Senate by Sens. Margaret Hassan (D-NH), Todd Young (R-IN), Catherine Cortez Masto (D-NV), Rob Portman (R-OH), and Ben Sasse (R-NE).

A similar bill was introduced Feb. 24 in the House by Reps. John Larson (D-CT), Ron Estes (R-KS), Jimmy Panetta (D-CA), Darin LaHood (R-IL), Suzan DelBene (D-WA), and Jodey Arrington (R-TX).

Companies and startups investing in R&D can either claim a tax credit or deduct their investments, which helps them invest in developing innovative products that lead to additional jobs and a stronger economy. The American Innovation and Jobs Act doubles the refundable R&D tax credit and extends it to more startups and small businesses. It also reverses a change in the 2017 tax law to ensure companies can continue to fully deduct R&D investments each year.

PCB EAST: The original East Coast technical conference and exhibition! Returning to the Boston suburbs in June 2021!