Biden admin expands 25% tax credit from CHIPS Act to semiconductor, solar panel manufacturing, with total cost exceeding $85bn.

The Biden administration has finalized rules extending a 25% tax credit from the 2022 CHIPS and Science Act to semiconductor and solar panel manufacturing, broadening eligibility to include wafer producers and chipmaking equipment manufacturers. The total cost of these tax credits is projected to exceed $85 billion, significantly higher than initial estimates. The initiative aims to bolster U.S. semiconductor supply chains and create jobs, while discouraging expansion in countries of concern like China.