H.R. 8959 – Semiconductor Superiority Act

AI-Generated Summary

Updated May 22, 2026 at 10:32 AM UTC

The Semiconductor Superiority Act changes the tax code so that companies that build semiconductor manufacturing plants in outer space – including low‑Earth orbit – can claim the advanced manufacturing investment credit. It clarifies which equipment and activities count as qualified property and manufacturing functions, and it excludes rockets from the credit. The changes apply to any qualifying property placed in service after the law is passed.

Key Provisions

Adds a new paragraph to the credit rules stating that equipment used to transport crew, goods, or supplies to and from an outer‑space facility, or located on Earth, still counts as part of the qualified facility.
Specifies that property located in outer space is still considered qualified property for the credit.
Expands the definition of manufacturing functions to include flight control, crew habitation, facility repair, and transportation related to the outer‑space plant.
Defines “outer space” to include low‑Earth orbit.
Excludes rockets or launch vehicles from being treated as qualified property.
Amends other tax provisions (Section 50(b)) to allow the credit for qualified property that is part of an outer‑space advanced manufacturing facility and launched from the United States.
Sets the effective date to apply only to property placed in service after the law’s enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 21, 2026

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HouseIntro Referral

Introduced in House

May 21, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 21, 2026

Bill Text

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Introduced in HouseIssued May 21, 2026

I

119th CONGRESS

2d Session

H. R. 8959

IN THE HOUSE OF REPRESENTATIVES

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

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.

1.

Short title

This Act may be cited as the Semiconductor Superiority Act.

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.