Published:
American Innovation and Jobs Act Would Advance U.S. Leadership in Semiconductor Research
Bipartisan legislation would
repeal a harmful tax provision that would make it more expensive for companies
to perform R&D in the U.S.
WASHINGTON—March 16, 2021—The
Semiconductor Industry Association (SIA) today released the following statement
from president and CEO John Neuffer in support of introduction of the American
Innovation and Jobs Act (S.749), bipartisan legislation that would would
promote semiconductor research and innovation in the United States
by repealing a harmful R&D tax provision. The legislation was
introduced in the Senate by Sens. Margaret Hassan (D-N.H.), Todd Young
(R-Ind.), Catherine Cortez Masto (D-Nev.), Rob Portman (R-Ohio), and Ben
Sasse (R-Neb.). A similar bill was introduced on Feb. 24 in the House by
Representatives by Reps. John Larson (D-Conn.), Ron Estes (R-Kan.), Jimmy
Panetta (D-Calif.), Darin LaHood (R-Ill.), Suzan DelBene (D-Wash.), and Jodey
Arrington (R-Texas). SIA represents 98 percent of the U.S. semiconductor
industry by revenue and nearly two-thirds of non-U.S. chip firms.
“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 U.S. semiconductor
companies invest about one-fifth of revenue in R&D annually, the U.S.
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 U.S. 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 U.S. R&D, urge its swift enactment, and look forward to working
with policymakers to advance semiconductor research in the United States.”
Companies and startups
investing in R&D can either claim a tax credit or deduct their investments,
which helps them to invest in developing new, 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 that companies can continue to fully
deduct R&D investments each year.
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