Brandon Morris Quoted in Law360 on CHIPS Act Tax Credit
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Akin Gump tax partner Brandon Morris was quoted by Law360 for its article “New 25% Chip Tax Credit Sparks Interest Amid Uncertainty.” The article discusses the 25% tax credit for semiconductor companies that forms part of the recently signed CHIPS Act and notes the uncertainty surrounding what kind of investments qualify for the credit.
Morris said, “The intent of the statute is to encourage new manufacturing. But navigating the new rules is a more complicated process in practice than it is in theory, as potential investors digest the nuances of how to qualify under and apply these rules to real world investments.”
The article notes that a qualified investment should be “integral” to operation of the manufacturing facility, regarding which Morris said that taxpayers would want to know “whether this is intended as the drafting would suggest to be very inclusive as to what constitutes integral to the operations and under what circumstances property crosses the line into ‘unrelated’.”
