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Semiconductor R&D Tax Credits

Numerous commercial sectors depend on the semiconductor industry. For example, automotive, healthcare, military, computers, and communications industries all rely on quality semiconductors production. That’s why semiconductor manufacturers engage in R&D operations such as increasing the processing power of chips, decreasing the cost of products by using innovative manufacturing efficiencies, or creating new testing methods. As a result, such companies are given the opportunity to claim benefits like R&D tax credit in the Semiconductors industry they can use to reimburse the money invested in research.

If your business is involved in qualifying activities in the semiconductor manufacturing field, you are probably curious about how much money you can get. Unfortunately, the R&D credit amount is not set — every state has its own regulations. That said, the maximum you can recoup is 22% of the claim period qualifying research expenses.

Qualifying Costs and Activities

Qualifying expenditures for this type of tax credit include raw materials, subcontractors, supplies, and employee salaries. For example, you can cover jobs like C-suite, process and electrical engineers, supply chain engineering managers, QA and QC personnel, computer specialists, PhDs, and data and materials scientists.

Nonetheless, your firm must be engaged in the activities listed below to qualify for the Semiconductors research and development tax credit.

  • Exploring different architectures at the micro- and nanoscale;

  • Creating new software and hardware solutions;

  • Prototyping and guaranteeing regulatory compliance;

  • Building a test apparatus to assess semiconductor properties;

  • Testing new materials to enhance performance qualities;

  • Inventing new items for consumer, commercial, or military usage.

If you encounter problems while computing the possible gain, our specialists can help you. We offer a quote free of charge and assistance during the application procedure for the Semiconductors R&D tax credit.



What kind of companies can apply?

Semiconductors manufacturers that conduct qualifying research activities.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, purchase orders, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.

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