{"id":97889,"date":"2026-06-08T07:39:36","date_gmt":"2026-06-08T07:39:36","guid":{"rendered":"https:\/\/teeptrak.com\/chips-act-48d-funding-readiness-2026\/"},"modified":"2026-06-08T07:40:24","modified_gmt":"2026-06-08T07:40:24","slug":"chips-act-48d-funding-readiness-2026","status":"publish","type":"post","link":"https:\/\/teeptrak.com\/en\/chips-act-48d-funding-readiness-2026\/","title":{"rendered":"CHIPS Act Section 48D in 2026: How US Manufacturers Lock In the 35% Credit Before It’s Gone"},"content":{"rendered":"

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CHIPS Act Section 48D in 2026: How US Manufacturers Lock In the 35% Credit Before It’s Gone<\/h1>\n

The federal Advanced Manufacturing Investment Credit (Section 48D) just got bigger \u2014 and shorter.<\/strong> The credit rate increased from 25% to 35%<\/strong> for qualified property placed in service after December 31, 2025. But there’s a hard cliff: the credit does not<\/strong> apply to property whose construction begins after December 31, 2026<\/strong>. For US manufacturers weighing a semiconductor or semiconductor-equipment facility, 2026 is the year to act \u2014 or miss the most generous version of this incentive.<\/p>\n

What changed: 25% to 35%<\/h2>\n

Section 48D originated in the CHIPS and Science Act as a 25% investment tax credit for facilities whose primary purpose is manufacturing semiconductors or semiconductor manufacturing equipment. Subsequent tax legislation raised the rate to 35% for property placed in service after December 31, 2025<\/strong>. The credit has already helped catalyze more than $540 billion<\/strong> in announced US semiconductor-supply-chain investment across 100+ projects in 28 states \u2014 part of a broader wave of roughly $1.76 trillion<\/strong> in announced US manufacturing investment tracked since 2025.<\/p>\n

The deadline that matters<\/h2>\n

The enhanced credit is not open-ended. Section 48D does not apply to property the construction of which begins after December 31, 2026<\/strong>. In practice that means the clock is on the start of construction<\/em>, not completion \u2014 so projects need to be scoped, sited and underway this year to qualify. Note also that taxpayers electing the credit on qualified progress expenditures may be limited to the 25% rate, so timing and election strategy materially affect what you capture.<\/p>\n

What qualifies<\/h2>\n

Eligibility centers on facilities whose primary purpose is manufacturing semiconductors or semiconductor manufacturing equipment<\/strong>. The credit applies to qualified investment in the facility’s tangible property integral to that purpose. Because the rules interact with recapture provisions under Section 50 and with state-level CHIPS\/IRA incentives, most eligible taxpayers pair the federal credit with state programs \u2014 stacking that can meaningfully change project economics. Always confirm specifics with your tax counsel.<\/p>\n

Why operational readiness decides the ROI<\/h2>\n

A 35% credit lowers your capital cost \u2014 but it doesn’t run the plant. New US fabs and supplier facilities are coming online through 2026, yet full staffing across announced sites isn’t expected until 2029 and beyond. That gap between built<\/em> and productive<\/em> is where returns are won or lost. Plants that instrument production from day one \u2014 capturing real-time OEE<\/a> and production data<\/a> \u2014 ramp faster and prove capacity sooner. The incentive funds the building; measurement funds the payback.<\/p>\n

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Download the Free CHIPS Act \u00a748D Toolkit<\/h3>\n

Instant download. No email confirmation needed.<\/p>\n \n

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