Congress·In Committee·H.R. 802

Rep. Moore Introduces Bipartisan STAR Act to Give 25% Tax Credit for U.S. Chip Design

STAR Act of 2025

about 1 year ago·View on Congress.gov

⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

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.

TaxesTechnology DigitalLabor Employment

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

StateScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Jan 28, 2025House

Referred to the House Committee on Ways and Means.

Jan 28, 2025

Introduced in House

Related News

3 articles

Tom's Hardware·about 1 year ago

US introduces act to add tax credits for chip designers, extends credits for chip production, too

The STAR Act, if approved, would help remedy this, allowing research-intensive chip designs like Arm, AMD, and Nvidia do to be covered by federal investments. It extends the CHIPS Act's investment tax credit and expands it to include investments in semiconductor design.

C+

Axios·about 1 year ago

Tech: Bills to watch

The STAR Act would extend the 25% tax credit for chip production and expand its eligibility to include certain qualified design expenses. Reps. Blake Moore, Suzan DelBene, and others reintroduced the bill this Congress with bipartisan support.

TrendForce·9 months ago

U.S. Senate Proposes 30% Chip Tax Credit Despite Trump's CHIPS Act Repeal Push

The proposed STAR Act (H.R. 802) represents a significant effort to strengthen the U.S. semiconductor industry through enhanced tax incentives, aiming to reduce reliance on foreign supply chains and support national security by extending credits to chip design.