Detroit City Wire

Rep. John Moolenaar (R-Midland) has joined a bipartisan coalition to introduce the Semiconductor Technology Advancement and Research (STAR) Act of 2024. This bill, akin to a CHIPS Act 2.0, proposes a new tax credit for microchip research and design.

The proposed credit expansion allows employers to claim the credit when they pay employees to develop specific chip functions. Additional qualified semiconductor design expenditures would include the cost of supplies and computers used in chip design.

This credit expansion is considered essential for the U.S. and Michigan to remain competitive in the global race for semiconductor innovation. Moreover, reliance on Chinese chips poses significant national security and economic stability challenges to the U.S.

Tax credits like this proposed expansion enable critical research by American companies that employ American workers. Increased domestic manufacturing of one of Michigan's most vital components can provide more stability for automotive OEMs and suppliers.

The tax reform debate is expected to start in January 2025.

The Detroit Regional Chamber and MichAuto have expressed their support for Moolenaar's continued backing of the automotive industry and his bipartisan efforts to strengthen the economy. The Chamber will continue monitoring this tax credit proposal.