STAR Act of 2025

Key Points

• This bill creates a 25% tax credit for companies that design computer chips in the United States. This means if a company spends money to create new chip technology, the government will let them keep more of their earnings to help pay for that work.
• The credit covers the costs of doing business, such as the wages paid to engineers and the cost of the specialized computer systems needed for design. It is available to both established tech giants and brand-new startup companies.
• To get the tax break, the work must be done within the U.S. or its territories. The goal is to encourage companies to keep high-tech jobs in American cities rather than moving them to other countries.
• The policy only rewards real innovation. It does not give money for work that just copies someone else's design or makes a chip look different for style reasons without making it work better or more reliably.
• This program is set to last until the end of 2036. By providing this help for over a decade, the government hopes to give businesses the confidence they need to build long-term research centers and hire more American workers.