Technology Industry: Tax Incentives in the CHIPS Act and Inflation Reduction Act

The Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS Act) and the “Inflation Reduction Act” (IRA) were enacted within a week of each other this past August. Both include tax incentives that can have a significant impact on technology company business decisions as well as tax planning.

In this podcast, Tony Castellanos, Tax Industry Leader for KPMG LLP (KPMG), Dean Kamahele, KPMG Technology Tax Industry Leader, and Hannah Hawkins, principal with the Credits & Incentives group in the KPMG Washington National Tax practice, discuss this recent legislation, providing a high-level overview of the incentives in the CHIPS Act and the IRA that will be of interest to technology companies and organizations in their supply chains. The podcast explores:

• Unique features in the design of several of the incentives
• Questions tech company executives should be asking while waiting for detailed legislative guidance
• The potential impact of CHIPS and IRA provisions on investment decisions as well as the potential indirect impact to a company’s environmental, social, and governance (ESG) profile
• The importance of involving a company’s tax department and tax advisers early in the evaluation process to facilitate a comprehensive understanding of the impact of the incentives to the company’s unique profile and how to maximize the amount of benefits that can be obtained.