I 
118TH CONGRESS 
2D SESSION 
H. R. 9183 
To amend the Internal Revenue Code of 1986 to add qualified semiconductor 
design expenditures to the advanced manufacturing investment credit. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2024 
Mr. MOORE of Utah (for himself, Ms. DELBENE, Mr. MCCAUL, Ms. MATSUI, 
Mr. MOOLENAAR, Mr. KRISHNAMOORTHI, Ms. TENNEY, Mr. KHANNA, 
and Mr. MORELLE) introduced the following bill; which was referred to 
the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to add quali-
fied semiconductor design expenditures to the advanced 
manufacturing investment credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Semiconductor Tech-
nology Advancement and Research Act of 2024’’ or the 
‘‘STAR Act of 2024’’. 
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SEC. 2. QUALIFIED SEMICONDUCTOR DESIGN EXPENDI-
TURES ADDED TO ADVANCED MANUFAC-
TURING INVESTMENT CREDIT. 
(a) IN GENERAL.—Section 48D of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a), by striking ‘‘an amount 
equal to’’ and all that follows through the period and 
inserting ‘‘, with respect to an eligible taxpayer, an 
amount equal to the sum of— 
‘‘(1) 25 percent of the qualified investment for 
such taxable year with respect to any advanced man-
ufacturing facility of such taxpayer, and 
‘‘(2) 25 percent of the qualified semiconductor 
design expenditures paid or incurred by such tax-
payer during the taxable year.’’, 
(2) by redesignating subsections (c), (d), and 
(e) as subsections (e), (f), and (g), respectively, 
(3) by inserting after subsection (b) the fol-
lowing new subsections: 
‘‘(c) QUALIFIED SEMICONDUCTOR DESIGN EXPENDI-
TURES.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(2), the term ‘qualified semiconductor design ex-
penditures’ means the sum of the following amounts 
which are paid or incurred by the taxpayer during 
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penditures under paragraph (7) receives or ac-
crues any amount from any other person for 
the right to use substantially identical personal 
property. 
‘‘(B) QUALIFIED
SERVICES.—The term 
‘qualified services’ means services consisting 
of— 
‘‘(i) engaging in qualified semicon-
ductor design, or 
‘‘(ii) engaging in the direct super-
vision or direct support of design activities 
which constitute qualified semiconductor 
design. 
If substantially all of the services performed by 
an individual for the taxpayer during the tax-
able year consists of services meeting the re-
quirements of clause (i) or (ii), the term ‘‘quali-
fied services’’ means all of the services per-
formed by such individual for the taxpayer dur-
ing the taxable year. 
‘‘(C) SUPPLIES.—The term ‘supplies’ has 
the meaning given such term in section 
41(b)(2)(C). 
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‘‘(D) WAGES.—The term ‘wages’ has the 
meaning 
given 
such 
term 
in 
section 
41(b)(2)(D). 
‘‘(3) CONTRACT DESIGN EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘contract 
design expenses’ means 100 percent of any 
amount paid or incurred by the taxpayer to any 
person (other than an employee of the tax-
payer) for qualified semiconductor design. 
‘‘(B) PREPAID AMOUNTS.—If any contract 
design expenses paid or incurred during any 
taxable year are attributable to qualified semi-
conductor research to be conducted after the 
close of such taxable year, such amount shall be 
treated as paid or incurred during the period 
during which the qualified semiconductor design 
is conducted. 
‘‘(4) TRADE OR BUSINESS REQUIREMENT DIS-
REGARDED
FOR
IN-HOUSE
DESIGN
EXPENSES
OF 
CERTAIN STARTUP VENTURES.—In the case of in- 
house semiconductor design expenses, a taxpayer 
shall be treated as meeting the trade or business re-
quirement of paragraph (1) if, at the time such in- 
house semiconductor design expenses are paid or in-
curred, the principal purpose of the taxpayer in 
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making such expenditures is to use the results of the 
design in the active conduct of a future trade or 
business— 
‘‘(A) of the taxpayer, or 
‘‘(B) of 1 or more persons who with the 
taxpayer are treated as single taxpayer under 
paragraph (7). 
‘‘(5) QUALIFIED SEMICONDUCTOR DESIGN.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
semiconductor design’— 
‘‘(i) means the development (or direc-
tion of the development) of product design, 
design specifications, trade secrets, tech-
nology, or other intellectual property for 
the purpose of semiconductor manufac-
turing, substantially all of the activities of 
which constitute elements of a process of 
experimentation for a purpose described in 
subparagraph (B)(i), and 
‘‘(ii) does not include any activity de-
scribed in subparagraph (B)(ii). 
‘‘(B) PURPOSES
FOR
WHICH
RESEARCH 
MAY QUALIFY FOR CREDIT.—For purposes of 
subparagraph (A)— 
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‘‘(i) IN GENERAL.—Semiconductor de-
sign shall be treated as conducted for a 
purpose described in this paragraph if it 
relates to— 
‘‘(I) a new or improved function, 
‘‘(II) performance, or 
‘‘(III) reliability or quality. 
‘‘(ii) CERTAIN PURPOSES NOT QUALI-
FIED.—Semiconductor design shall in no 
event be treated as conducted for a pur-
pose described in this paragraph if it is 
conducted for purposes of— 
‘‘(I) style, taste, cosmetic, or 
other design factors unrelated to a 
purpose described in clause (i), 
‘‘(II) design after the commence-
ment of commercial production of the 
semiconductor, unless such design is 
related to firmware, software, or man-
ufacturing 
process 
activities 
that 
would otherwise meet the require-
ments of clause (i), 
‘‘(III) duplication of an existing 
semiconductor product (in whole or in 
part) from a physical examination of 
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the semiconductor itself or from 
plans, blueprints, detailed specifica-
tions, or publicly available information 
with respect to such semiconductor, or 
‘‘(IV) surveys or studies related 
to— 
‘‘(aa) efficiency, 
‘‘(bb) management function 
or techniques, 
‘‘(cc) market research, test-
ing, or development, including 
advertising and promotions, 
‘‘(dd) routine data collec-
tion, or 
‘‘(ee) routine or ordinary 
testing or inspection for quality 
control. 
‘‘(6) UNITED
STATES.—For purposes of this 
subsection, the term ‘United States’ includes the 
possessions of the United States. 
‘‘(7) AGGREGATION
OF
EXPENDITURES.—For 
purposes of this subsection, in determining the 
amount of qualified semiconductor design expendi-
tures, rules similar to the rules of section 41(f)(1) 
shall apply. 
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‘‘(d) COORDINATION WITH CREDIT FOR INCREASING 
RESEARCH
EXPENDITURES.—Any qualified semicon-
ductor design expenditures for which a credit is allowed 
under this section shall not be taken into account for pur-
poses of determining the credit allowable under section 41 
for such taxable year.’’, and 
(4) in subsection (g) (as so redesignated), by 
inserting ‘‘or qualified semiconductor design expend-
itures paid or incurred after December 31, 2026’’ 
before the period. 
(b) CONFORMING AMENDMENT.—Section 56A(c)(9) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘48D(d)’’ and inserting ‘‘48D(f)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
Æ 
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