A fair tax rate ensures that semiconductor companies globally are operating on a level playing field. Outdated and onerous tax policies fail to reflect the business environment, but these policies also stifle innovation and curb growth.
In the United States, SEMI supported the Tax Cut and Jobs Act of 2017, which enacted a globally competitive corporate tax, modernized the international taxation system, and maintained the R&D tax credit. SEMI is working on supporting implementation and working to correct remaining issues. The law, for instance, changed the rules that allowed businesses to deduct qualified R&D expenses from their taxable income.