May 21, 2026
Mr. Buchanan (for himself, Ms. Sewell, and Ms. DelBene) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to clarify the application of the advanced manufacturing investment credit with respect to semiconductor manufacturing facilities located in outer space.
Section 1. Short title
This Act may be cited as the Semiconductor Superiority Act
.
Sec. 2. Clarifying application of advanced manufacturing investment credit for semiconductor manufacturing facilities located in outer space
(a) In general
Section 48D(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(6) Application to facilities located in outer space
(A) In general
In the case of an advanced manufacturing facility which is located in outer space—
(i)
for purposes of paragraph (1), qualified property shall not fail to be treated as part of such facility solely because such qualified property is—
(I)
used to transport crew, goods, equipment, material, or supplies in outer space to and from such facility, or
(II)
not located in outer space, and
(ii)
for purposes of paragraph (2)—
(I)
property shall not fail to be treated as qualified property solely because such property is located in outer space,
(II)
with respect to subparagraph (A)(iv), property shall not fail to be treated as integral to the operation of such facility solely because such property is—
(aa)
used in the manner described in clause (i)(I), or
(bb)
not located in outer space, and
(III)
with respect to subparagraph (B)(ii), functions related to manufacturing shall include—
(aa)
flight control operations,
(bb)
crew habitation in outer space,
(cc)
repair of the facility, and
(dd)
transportation of crew, goods, equipment, material, or supplies to and from the facility.
(B) Outer space
For purposes of this paragraph, the term outer space shall include low-Earth orbit.
(C) Exclusion
For purposes of this subsection, the term qualified property shall not include a rocket or similar launch vehicle constructed for the purpose of propelling a payload from Earth into outer space.
(b) Other special rules
Section 50(b) of the Internal Revenue Code of 1986 is amended—
(1)
in paragraph (1)(B), by inserting or any qualified property which is part of an advanced manufacturing facility located in outer space (as such terms are defined under section 48D(b)) and held by a United States person if such property was launched from within the United States
after section 168(g)(4)
, and
(2)
in paragraph (2)—
(A)
in subparagraph (C), by striking and
at the end,
(B)
in subparagraph (D), by striking the period at the end and inserting ; and
, and
(C)
by adding at the end the following new subparagraph:
(E)
any qualified property which is part of an advanced manufacturing facility located in outer space (as such terms are defined under section 48D(b)).
(c) Effective date
The amendments made by this section shall apply to property placed in service after the date of enactment of this Act.
(d) Rule of construction
Nothing in this Act, or the amendments made by this Act, shall be construed to create any inference with respect to the allowance or determination of the advanced manufacturing investment credit under section 48D of the Internal Revenue Code of 1986 with respect to an advanced manufacturing facility located in outer space on or before the date of the enactment of this Act.