SEMI Commends Congress for Passage of Critical Tax Extensions
WASHINGTON, DC – October 3, 2008 – SEMI joins many others in the business community in commending Congress for taking action to stabilize the economy through passage of the financial rescue package. This package included extension of many tax measures, such as an eight year extension of the investment tax credit (ITC) for solar energy through 2016 and a two year extension of the R&D tax credit through 2009. The R&D tax credit expired on December 31, 2007 and the solar energy ITC was set to expire at the end of this year.
“The financial rescue package is an important first step in containing the current economic challenges that affect so many,” said Victoria Hadfield, president of SEMI North America. Hadfield continued, “In particular, the extension of critical tax measures will have a significant impact on the economy through the creation of many new highly skilled positions and ensuring a continued U.S. leadership position for technological innovation. SEMI commends the Congress for their commitment to basic research and to promoting a solar energy industry in the United States.”
In a study recently released by Navigant Consulting, Inc., researchers estimated that extending the solar ITC for a full eight years could support 1.2 million employment opportunities, including 440,000 permanent jobs. In addition to the creation of jobs, the report estimates $232 billion of investment in the solar energy industry in the United States during this timeframe.
SEMI represents nearly 800 member companies in the United States, many of which are also involved in the development of photovoltaic technologies. These companies face steep costs due to the intricate challenges of developing new generations of microelectronics and related technologies. There is heavy spending on R&D, and on average, companies reinvest about 10-15 percent of revenues in R&D for advanced manufacturing processes and technology.
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.