S. 4750

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4750 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4750

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.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Mr. Budd (for himself and Mr. Bennet) introduced the following bill; 
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
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