AMAT · 10-Q · 2026Q3 · Full report

Domestic Manufacturing Investment

APPLIED MATERIALS INC /DE · 2026-08-20 · Importance 64 · Surprise 42 · In source text

The U.S. CHIPS and Science Act provides a 25% investment tax credit for qualifying domestic semiconductor-manufacturing investments placed in service after December 31, 2022, with construction beginning before January 1, 2027. As of July 26, 2026, Applied Materials had recorded $1.2 billion of CHIPS Act investment tax credits, including $1.2 billion in deferred income taxes and other assets expected to be refunded and $41 million expected to offset fiscal 2026 income-tax liabilities. The July 2025 One Big Beautiful Bill Act expanded the incentive, increasing the credit to 35% for qualifying property placed in service after December 31, 2025, while allowing immediate expensing of qualifying property and U.S.-performed research costs beginning primarily in fiscal 2026 or 2027.

Key facts

• The One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025 increases the investment tax credit for certain domestic semiconductor manufacturing from 25% to 35% for qualifying property placed in service after December 31, 2025 and makes other tax changes effective beginning in fiscal 2026 or 2027. source
• The CHIPS Act creates a 25% investment tax credit for qualifying property placed in service after December 31, 2022 for which construction begins before January 1, 2027; Applied recognizes the credit when there is reasonable assurance of qualification and receipt. source

Impact estimates