The Advanced Manufacturing Investment Credit was established by the Creating Helpful Incentives to Produce Semiconductors Act of 2022, commonly known as the CHIPS Act. The tax credit is equal to 25% of the qualified investment for the taxable year with respect to an advanced manufacturing facility of an eligible taxpayer. An advanced manufacturing facility is a facility whose primary purpose is the manufacturing of semiconductors or semiconductor manufacturing equipment. Qualified investment means the basis of any qualified property placed in service by the taxpayer that is part of an advanced manufacturing facility. Who can claim the credit Manufacturers of semiconductors and semiconductor manufacturing equipment within the United States that meet certain eligibility requirements. Qualified property Qualified property is: Placed in service after Dec. 31, 2022 Tangible property that is subject to depreciation or amortization Integral to the operation of an advanced manufacturing facility Built or acquired by the taxpayer if the original use of the property begins with the taxpayer Qualified property doesn't include a building or a portion of a building used for offices, administrative services, or other functions unrelated to manufacturing. How to claim the credit Use Form 3468, Investment Credit to calculate and report your credit for any qualified investment placed in service during the taxable year. Taxpayers can elect to treat the advanced manufacturing investment credit as a payment against tax that is equal to the amount of the credit. For property held directly by a partnership and S corporation, the partnership or S corporation may elect to receive a payment equal to the amount of the credit instead of claiming the credit. To do so, the taxpayer or entity must: Obtain as registration number using the IRA/CHIPS Pre-filing Registration Tool for each qualified investment. File the annual tax return by the due date (or extended due date) and make a valid elective payment election. This includes a properly completed and attached Form 3468, Investment Credit, and Form 3800, General Business Credit, which should include the registration number(s) and required return attachments. News releases IR-2024-275, Oct. 22, 2024, IRS and Treasury issue guidance on implementation of advanced manufacturing investment credit IRS-2024-62, March 5, 2024, Treasury, IRS issue guidance for the elective payment of advanced manufacturing investment credit IRS-2023-249, Dec. 22, 2023, IRS opens free IRA and CHIPS Pre-filing Registration Tool for organizations to register to monetize clean energy credits IR-2023-117, June 14, 2023, Treasury, IRS issue guidance for the advanced manufacturing investment credit IR-2023-52, March 21, 2023, Treasury, IRS issue guidance on implementation of advanced manufacturing investment credit Law and guidance Final regulations Advanced Manufacturing Investment Credit Elective Payment of Advanced Manufacturing Investment Credit Proposed regulations Advanced Manufacturing Investment Credit Announcements Announcement 2024-40 PDF, Federal Income Tax Treatment of Certain Amounts Paid or Incurred Pursuant to Agreements with the Department of Commerce Required Under the CHIPS Act of 2022 Forms and publications About Form 3468, Investment Credit About Form 3800, General Business Credit Publication 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool User Guide PDF Related Elective pay and transferability Elective pay and transferability frequently asked questions: Elective pay
