NY Lawmakers Back BASIC Act to Boost Semiconductor Manufacturing Credits
New federal tax provisions increase investment credits to 35% to accelerate domestic chip production and support New York projects.
Congresswoman Claudia Tenney (NY-24) and a coalition of lawmakers have backed the Building Advanced Semiconductors Investment Credit (BASIC) Act to accelerate the reshoring of chip production. The move aims to secure U.S. technological leadership and reduce critical dependencies on foreign suppliers.
The BASIC Act, which was incorporated into a broader federal tax package known as the "One Big Beautiful Bill," significantly raises the advanced manufacturing investment credit from 25% to 35%. Additionally, the legislation extends the availability of this credit through December 31, 2030. According to Congresswoman Tenney, the act is designed to encourage direct investment in the U.S. economy by expanding and extending these manufacturing incentives.
The Push for Domestic Production
This legislative push comes as the United States aggressively seeks to move semiconductor fabrication back to American soil. The strategy is driven by national security concerns and a desire to mitigate the risks associated with relying on overseas suppliers, particularly those in China. Central New York has emerged as a primary hub for this industrial shift, with the Town of Clay serving as a focal point for the development of leading-edge memory fabs.
Impact on New York Industry
By lowering the capital barriers for semiconductor giants, the legislation provides a direct financial catalyst for companies like Micron, GlobalFoundries, and TSMC to expand their domestic footprints. In Upstate New York, the incentives are expected to support the creation of thousands of high-paying technical jobs and solidify the region's role in the global supply chain.
Sanjay Mehrotra, Chairman, President, and CEO of Micron, stated that the company strongly supported the legislation. Mehrotra noted that the act strengthens U.S. manufacturing and drives innovation while helping to develop the burgeoning semiconductor ecosystem in Upstate New York and other American hubs.
Future Outlook
As the provisions of the "One Big Beautiful Bill" take effect, industry observers will be watching the pace of construction and hiring at Micron's planned facilities. The long-term success of the BASIC Act will depend on whether these increased credits are sufficient to offset the high costs of building advanced fabrication plants. While the tax framework is now in place, the actual scale of the resulting domestic capacity remains the key metric for national security officials and economic developers alike.