CHIPS Investment Tax Credit (§48D)
35% federal advanced manufacturing investment credit for qualifying property placed in service after 2025. Semiconductor or semiconductor-equipment manufacturing requirements apply; construction must begin before January 1, 2027. Eligible taxpayers may elect payment under §48D(d).
Check an Address — Free Snapshot
Explore location-based incentives alongside CHIPS Investment Tax Credit (§48D). This program requires a separate review of its business or project requirements.
Published criteria — confirm with Internal Revenue Service
- Semiconductor manufacturing facility or specialized equipment
- Construction must begin before January 1, 2027; qualified investment and other requirements apply
CHIPS Investment Tax Credit (§48D) is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · 35% federal investment tax credit (property placed in service after 2025)
Current published terms as of 2026-10-09
- +35% federal investment tax credit for property placed in service after 2025
- +An elective-payment election may be available to qualifying taxpayers under §48D(d)
- +Ask a tax advisor how state incentives affect the qualified investment and credit calculation
- 1Confirm that construction begins before January 1, 2027 under the applicable IRS rules
- 2Pre-file with IRS Energy Credits Online for direct pay
- 3File Form 3468 with tax return; allocate credit on basis of investment basis
Consult a tax advisor before initiating qualified investment
- Documentation of qualified semiconductor manufacturing investment
- Engineering and construction records
- IRS direct-pay pre-filing registration
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 829-1040
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- Visit site ↗
Last verified 2026-10-09
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
Qualified affordable-housing projects in HUD-designated QCTs may use up to 130% of otherwise eligible basis for LIHTC calculations, subject to allocation and tax rules. HUD published 2027 designations on October 6, 2026; their application depends on allocation, bond and placed-in-service timing.