CHIPS Investment Tax Credit (§48D)
25% federal investment tax credit for semiconductor manufacturing facilities or specialized equipment. Eligible for direct pay. Investment must be initiated by end of 2026 to qualify.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks CHIPS Investment Tax Credit (§48D), alongside every other incentive that touches that parcel.
Businesses making qualified investments in semiconductor manufacturing facilities or specialized semiconductor manufacturing equipment.
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 exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · 25% federal investment tax credit
- +25% federal investment tax credit
- +Eligible for IRS direct pay (cash refund) without elective-pay restrictions
- +Stacks with state MICRO program and Illinois Quantum Enterprise Zone incentives
- 1Initiate qualified investment before end of 2026
- 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.
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- (800) 829-1040
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Last verified 2026-05-21
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+.
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.