1. Short title This Act may be cited as the Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS for America Act . 2. Semiconductor investment tax credit (a) Establishment of credit Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48C the following: 48D. Qualifying semiconductor equipment credit (a) In general For purposes of section 46, the qualifying semiconductor equipment credit for any taxable year is the applicable percentage of— (1) the basis of any qualified semiconductor equipment placed in service during such taxable year, (2) any qualified semiconductor manufacturing facility investment expenditures incurred during such taxable year, and (3) any expenses incurred by the taxpayer during such taxable year with respect to entering into a lease (including renewal or extension of a lease) for qualified semiconductor equipment. (b) Applicable percentage For purposes of subsection (a), the applicable percentage is— (1) 40 percent in the case of any qualified semiconductor equipment which is placed in service before January 1, 2025, or any qualified semiconductor manufacturing facility investment expenditures or expenses described in subsection (a)(3) which are incurred before such date, (2) 30 percent in the case of any such equipment which is placed in service, or any such expenditures or expenses which are incurred, after December 31, 2024, and before January 1, 2026, (3) 20 percent in the case of any such equipment which is placed in service, or any such expenditures or expenses which are incurred, after December 31, 2025, and before January 1, 2027, and (4) 0 percent in the case of any such equipment which is placed in service, or any such expenditures or expenses which are incurred, after December 31, 2026. (c) Qualified semiconductor equipment For purposes of this section, the term qualified semiconductor equipment means any property— (1) which has been identified by the Secretary, in consultation