S. 4750 – Semiconductor Superiority Act

AI-Generated Summary

Updated June 24, 2026 at 2:21 PM UTC

The Semiconductor Superiority Act amends the Internal Revenue Code to clarify how the advanced manufacturing investment credit applies to semiconductor manufacturing facilities that are located in outer space, including low‑Earth orbit. It ensures that equipment and property used to support such facilities—whether on‑site or used for transport—can still qualify for the credit, while specifically excluding launch rockets from qualification. The changes affect U.S. taxpayers that own or operate advanced manufacturing property in space.

Key Provisions

Adds a new paragraph to section 48D(b) stating that qualified property used for transport, crew habitation, repair, flight control, or other functions related to a space‑based semiconductor facility will still be treated as part of the facility for credit purposes.
Defines “outer space” to include low‑Earth orbit for the purposes of the credit.
Specifies that rockets or launch vehicles are not considered “qualified property” for the credit.
Amends section 50(b) to allow qualified property that is part of an outer‑space advanced manufacturing facility and launched from the United States to be included in other related tax provisions.
Sets the effective date to apply only to property placed in service after the law’s enactment and clarifies that it does not affect credits for facilities that existed before enactment.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2026

View full timeline

SenateIntro Referral

Introduced in Senate

June 11, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2026

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in SenateIssued June 11, 2026

II

119th CONGRESS

2d Session

S. 4750

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.

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.