Semiconductor Manufacturers and Equipment Manufacturers 

Unlock the Full Value of the 48D Advanced Manufacturing Credit and CHIPs Grant 

CFO Services is your strategic partner in navigating the complex landscape of federal tax credits and incentives. With deep expertise in semiconductor manufacturing, we help clients maximize benefits under the Section 48D Advanced Manufacturing Investment Credit and the CHIPs and Science Act—two powerful tools designed to accelerate domestic innovation and production.

About R&DOverview: What Are the 48D Credit and CHIPs Grant? 

    • Section 48D Credit: A federal investment tax credit of up to 35% for qualified property used in semiconductor manufacturing or semiconductor equipment production. 
    • CHIPs Grant: Part of the $280 billion CHIPs and Science Act, this grant provides direct funding for U.S.-based semiconductor fabrication and packaging facilities. 

These programs are designed to strengthen national security, create high-paying jobs, and revitalize domestic supply chains. 

Credit Value & Grant Overview 

48D Credit Highlights 

  • Credit Rate: Increased from 25% for 2023-2025 to 35% for property placed in service after 2025. 
  • Eligibility: Facilities must begin construction before January 1, 2027. 
  • Monetization: Elective payment option allows the credit to be treated as a refundable tax payment. 

CHIPs Grant Highlights 

  • Award Value: Up to $93 million per project. 
  • Disbursement: Tied to milestone-based reporting and compliance with federal guidelines. 
  • Compliance: Includes Davis-Bacon wage standards, environmental permitting, and workforce development. 

Legislative Updates 

  • The OBBB Act (P.L. 119-21) enhanced the 48D credit rate to 35% for qualified property placed in service after 2025. 
  • Construction start deadlines and rules for qualified progress expenditures remain unchanged. 
  • CHIPs funding recipients must comply with routine and milestone-based reporting, including quarterly uploads to the Salesforce portal. 

Our Services 

48D Advanced Manufacturing Credit Services 

CFO Services provides full-cycle support for claiming and monetizing the Section 48D credit: 

Eligibility Assessment 

  • Determine facility qualification under Section 48D. 
  • Conduct entity-of-concern and transaction reviews. 
  • Align construction timelines with credit eligibility windows. 

Documentation & Reporting 

  • Capture and categorize invoices, contracts, and fixed assets. 
  • Prepare and file Form 3468 and supporting IRS documentation. 
  • Maintain documentation for elective payment elections. 

Credit Calculation & Monetization 

  • Analyze asset detail for qualification and credit calculation. 
  • Optimize refundable credit value through direct pay election. 
  • Track qualified investment basis placed in service each tax year. 
  • Prepare Pre-Filing registration documentation 

CHIPs Grant Services 

Our CHIPs grant consulting ensures full compliance and maximized funding disbursement: 

Eligibility & Application Support 

  • Identify qualifying projects and facilities. 
  • Assist with milestone planning and documentation. 
  • Coordinate with vendors and internal teams for application readiness. 

Compliance Management 

  • Develop Davis-Bacon Act (DBA) and Prevailing Wage Act (PWA) compliance frameworks. 
  • Identify contractors and subcontractors subject to wage requirements. 
  • Review contracts and provide initial training on compliance protocols. 
  • Assist in identifying and integrating apprenticeship programs. 

Reporting & Documentation 

  • Track and manage milestone-based reporting requirements. 
  • Upload quarterly and annual reports to the Salesforce portal. 
  • Maintain records for workforce, financials, environmental permits, and national security compliance. 

DBA/PWA Analysis & Enforcement 

  • Perform periodic analysis of payroll and labor classifications. 
  • Collect and validate documentation for wage and apprenticeship compliance. 
  • Deliver Davis-Bacon Enforcement Reports and correction reports as needed. 

Why Choose CFO Services? 

  • Specialized Expertise: Decades of experience in federal credits, semiconductor incentives, and compliance frameworks. 
  • Integrated Tools: Our proprietary BIPs software tracks filings, milestones, and documentation across all programs. 
  • Scalable Solutions: From single-site facilities to multi-state operations, we tailor our services to your footprint. 
  • Proven Results: Clients have secured hundreds of millions in combined federal and state incentives with our guidance.