STAR Act of 2024

The STAR Act of 2024 creates a new 25% tax credit for semiconductor companies in the United States, specifically for qualified semiconductor design expenditures. This credit applies to both in-house design costs (like employee wages for design work and supplies used in design) and contracted design work paid to external firms, all conducted within the U.S. The bill directly affects U.S.-based semiconductor manufacturers and design firms by reducing their tax liability for eligible design expenses. The credit is added to the existing advanced manufacturing investment credit, with specific exclusions for non-qualifying activities like cosmetic design or duplicating existing products.