The CHIPS Act of 2022 established a 25% tax credit for investments in semiconductor manufacturing through the federal Advanced Manufacturing Investment Tax Credit. This credit complements the $39 billion in incentive funding available through the CHIPS for America Fund to support US semiconductor production.
According to the FY 2026 report on US Tax Expenditures, this tax credit is projected to result in $2.68 billion in revenue loss (tax expenditure) for FY25. Over the ten-year period from 2025-2034, the total estimated revenue loss is $14.73 billion.
Companies may elect to treat the credit as a payment against federal income tax, allowing them to receive a payment instead of claiming the credit. The outlays are estimated at $1.13 billion in FY25, with total estimated outlays expected to reach $9.96 billion between 2025 and 2034.
In July 2025, the US Department of Commerce Office of Inspector General (OIG) released a status report on CHIPS Act programs. The report notes that the Chips Program Office has made awards for up to $33.7 billion in direct funding and $5.5. billion in loans across 20 awards. It also provides a helpful summary of the awards process and agreements.
The CHIPS Act calls for several levels of reporting and accountability. My understanding is that the Commerce OIG report represents one of these statutory requirements. In addition, the Act requires annual reports to Congress and Government Accountability Office (GAO) reporting requirements on outcomes. Together, these requirements provide some transparency for the public and policymakers.
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