News

Congress approved major legislation yesterday, the CHIPS and Science Act (CHIPS Act), which will provide billions of dollars in subsidies and tax credits for the semiconductor industry. The recreational boating industry has been a champion for passing this crucial piece of legislation at a time when demand for recreational boats continues to reach record highs, and boat makers across the country face the impacts of the ongoing chip shortage.

The bill includes $54 billion in subsidies for U.S. semiconductor companies, as well as a new, four-year 25 percent tax credit to encourage companies to build plants in the United States. President Biden is expected to sign the bill in the coming days.

“The last few years have made it clear that our country and economy cannot afford to continue outsourcing semiconductor manufacturing and we applaud Congress for fixing the problem in a bipartisan manner,” said Frank Hugelmeyer, president of the National Marine Manufacturers Association. “With marine manufacturers innovating on all fronts to deliver more advanced, efficient, and safer products, the CHIPS and Science Act will help ensure our industry’s growing demand for semiconductors is met. In the days ahead, we urge Congress to take additional steps to bolster competitiveness and supply chain constraints, including reinstating the exclusion process for Section 301 tariffs and allowing businesses to fully deduct their research and development expenses in the same year they are incurred."

For questions or additional information, please contact Clay Crabtree, director of federal government relations, at [email protected]