SIA strongly supported the Tax Cuts and Jobs Act, passed by Congress and signed into law in late 2017. The U.S. tax code had put American companies at a distinct disadvantage, with a high statutory rate and outdated international provisions. The Tax Cuts and Jobs Act immediately instituted a globally competitive rate of 21 percent, preserved the research and development (R&D) tax credit, modernized international taxation and provided a lower effective tax rate, for foreign income derived from intellectual property such as patents. These important reforms significantly improve the competitiveness of U.S. semiconductor research, design and manufacturing.
The Department of Treasury and the Internal Revenue Service are tasked with promulgating regulations and issuing notices to implement the sweeping reforms enacted by statute. Legislation to make technical corrections to certain provisions in the tax bill is also expected in 2018.