Semiconductor Superiority Act

119th Congress Introduced by Michael Bennet and 1 co-sponsor

The bill expands the 48D advanced manufacturing tax credit to cover outer-space semiconductor facilities, including some in-space property and operations.

Introduced in Senate

Summary of Bill S.4750 (119th Congress) – Semiconductor Superiority Act

Purpose and intent

The bill amends the Internal Revenue Code to clarify and expand how the advanced manufacturing investment credit (the 48D credit) applies to semiconductor manufacturing facilities located in outer space (defined to include low-Earth orbit). The aim is to ensure qualified property and related activities for such facilities qualify for the credit.

Key provisions and changes

Location-specific expansion of the 48D credit (Section 48D(b)):
Adds a new paragraph establishing that, for an advanced manufacturing facility located in outer space, certain property used there can still be treated as qualified property even if:
- It is used to transport crew, goods, equipment, or supplies to and from the facility, or
- It is not located in outer space.
For purposes of the credit’s tests, property located in outer space can be considered integral to the facility’s operation even if it is used in the described transportation or not located in outer space.
The definition of outer space includes low-Earth orbit.
A caveat excludes rocket or similar launch vehicles designed to propel payloads into outer space from being treated as qualified property.
Related amendments to Section 50 (Credit for specified energy properties and other credits):
Modifies subsection 50(b) to include, for purposes of the credit, any qualified property that is part of an outer-space located advanced manufacturing facility launched from within the United States.
Carries forward the treatment of such outer-space qualified property as eligible for the credit, aligning with the expanded interpretation under 48D(b).
Effective date (Section 2,(c)):
The amendments apply to property placed in service after the date of enactment.
Construction and coordination (Section 2,(d)):
clarifies that nothing in the act should be construed to affect the allowance or determination of the 48D credit for outer-space facilities on or before enactment.

Who or what would be affected

United States-based advanced manufacturing facilities located in outer space (including low-Earth orbit) that manufacture semiconductors.
Qualified property and activities associated with these facilities, including property used to transport crews and supplies, and certain in-space operations that are integral to manufacturing.
Launch-related components tied to such facilities, with explicit exclusion for rocket/launch vehicles themselves from being qualified property.

Timelines and procedural aspects

Enactment date assumed immediately upon passage; amendments apply to property placed in service after enactment.
The bill was introduced in the Senate on June 11, 2026, and referred to the Senate Committee on Finance.

Overall impact

Provides a statutory framework to incentivize semiconductor manufacturing in space by ensuring related property and activities can qualify for the advanced manufacturing investment credit.
Signals federal policy support for space-based manufacturing infrastructure, subject to future regulatory and administrative interpretation.