Bill · H.R. 802· House(119-HR-802)
STAR Act of 2025
- Introduced
- 1/28/2025
- Last activity
- 1/28/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Blake Moore
- Cosponsors
- - 6 - 22
- Introduced
- In Committee
What this bill would do
This bill, known as the "Semiconductor Technology Advancement and Research Act of 2025," proposes to amend the Internal Revenue Code of 1986. It aims to add qualified semiconductor design expenditures to the existing advanced manufacturing investment credit. The credit would cover both in-house and contract design expenses conducted within the United States. Eligible expenses include wages, supplies, and computer use for qualified services. These design activities must relate to new or improved functions, performance, or reliability. The credit is set to terminate after December 31, 2036.
Yes· 3 of 7
Would business owners be better off under this?+5
Business owners in the semiconductor industry benefit from significantly reduced costs for design and research through tax credits.
Does this put more money into scientific research?+5
The bill effectively increases funding for semiconductor research by offering a 25 percent tax credit on design-related expenses.
Does this cut taxes for small businesses?+4
The bill provides a 25 percent tax credit for qualified semiconductor design expenditures, which can benefit startup ventures.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Credits for Semiconductor Design: Eligible taxpayers can receive a credit equal to 25 percent of qualified semiconductor design expenditures (Section 2(a)(1)). This includes:
- In-house expenses: This covers wages for employees performing qualified services, supplies, and the right to use computers (Section 2(a)(3)(2)).
- Contract expenses: This covers 100 percent of amounts paid to people other than employees for qualified design (Section 2(a)(3)(3)).
- Support for Startup Ventures: The bill allows taxpayers to meet the trade or business requirement if their principal purpose is to use design results for a future trade or business (Section 2(a)(3)(4)).
- Incentivizing Domestic Work: The definitions specifically include design activities conducted in the United States, which includes its possessions (Section 2(a)(3)(1) and Section 2(a)(3)(6)).
Potential Negative Impacts for People
- Exclusions from Credit: Certain activities will not qualify for the tax credit, which may limit the benefits for some businesses. These exclusions include:
- Design factors: Design based on style, taste, or cosmetics (Section 2(a)(3)(5)(B)(ii)).
- Post-production design: Design conducted after commercial production begins, unless it relates to firmware, software, or manufacturing processes (Section 2(a)(3)(5)(B)(ii)).
- Duplication: Design that duplicates an existing product via physical examination or blueprints (Section 2(a)(3)(5)(B)(iii)).
- Routine activities: Surveys, market research, advertising, or routine quality control testing (Section 2(a)(3)(5)(B)(iv)).
- Credit Termination: The credit is not permanent and will cease to apply to any expenditures paid or incurred after December 31, 2036 (Section 2(a)(4)).
- Credit Limitations: Taxpayers cannot take credit for the same expenditures under both this section and the credit for increasing research expenditures under section 41 (Section 2(a)(3)(d)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Economic Growth+4Improves Small Business Support+4Reduces Small Business Taxes+4Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+5
- Education And Technology
- Increases Scientific Research Funding+5
- National Security And Foreign Policy
- Improves Cybersecurity Defense+2
- 9/2/2026
- 1 Cosponsor added.
- 8/20/2026
- 1 Cosponsor added.
- 7/20/2026
- 1 Cosponsor added.
- 11/20/2025
- 1 Cosponsor added.
- 10/21/2025
- 1 Cosponsor added.
- 7/14/2025
- 1 Cosponsor added.
- 6/4/2025
- 1 Cosponsor added.
- 5/13/2025
- 1 Cosponsor added.
- 5/6/2025
- 1 Cosponsor added.
- 4/28/2025
- 1 Cosponsor added.
- 3/25/2025
- 1 Cosponsor added.
- 2/12/2025
- 1 Cosponsor added.
- 2/10/2025
- 2 Cosponsors added.
- 2/4/2025
- 1 Cosponsor added.
- 1/28/2025
- Referred to the House Committee on Ways and Means.
- 13 Cosponsors added.
- Introduced in House
Vern BuchananRepublican · Florida
Suzanne BonamiciDemocrat · Oregon
Julia BrownleyDemocrat · California
James BairdRepublican · Indiana
André CarsonDemocrat · Indiana
Suzan DelBeneDemocrat · Washington
Josh GottheimerDemocrat · New Jersey
Ro KhannaDemocrat · California
Raja KrishnamoorthiDemocrat · Illinois
Nicholas LangworthyRepublican · New York
Greg LandsmanDemocrat · Ohio
Michael McCaulRepublican · Texas
Doris MatsuiDemocrat · California
John MoolenaarRepublican · Michigan
Joseph MorelleDemocrat · New York
John MannionDemocrat · New York
Kristen McDonald RivetDemocrat · Michigan
Sarah McBrideDemocrat · Delaware
Dave MinDemocrat · California
Joe NeguseDemocrat · Colorado
Jimmy PanettaDemocrat · California
Terri SewellDemocrat · Alabama
Bradley SchneiderDemocrat · Illinois
Darren SotoDemocrat · Florida
Thomas SuozziDemocrat · New York
Greg StantonDemocrat · Arizona
Claudia TenneyRepublican · New York
Eugene VindmanDemocrat · Virginia