Bill Overview
Title: FABS Act
Description: This bill allows a new tax credit through 2032 for investment in any semiconductor manufacturing facility and for semiconductor design expenditures.
Sponsors: Rep. McCaul, Michael T. [R-TX-10]
Target Audience
Population: People impacted by advancements and production in the semiconductor industry
Estimated Size: 330000000
- The semiconductor industry is critical for numerous sectors, including technology, automotive, and consumer electronics, impacting billions globally.
- Tax incentives for semiconductor manufacturers could increase investment in new facilities and technology, potentially increasing global production capacity.
- Development and design improvements may lead to more efficient and advanced products, indirectly benefiting end-users worldwide.
- Tax incentives might make US facilities more competitive, potentially influencing the global market and available jobs worldwide in this industry.
Reasoning
- The semiconductor industry plays a crucial role in technology, automotive, and consumer electronics, influencing billions globally.
- The FABS Act could significantly boost domestic production capabilities, creating jobs and fostering economic growth in the US.
- Tax incentives will likely increase investments in semiconductor manufacturing, making US facilities more competitive globally.
- While tech advancements are critical, the policy's impact might not directly reach all American populations, especially those outside tech-related industries.
Simulated Interviews
Software Developer (San Francisco, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is a great move. It could enhance job security and ensure a steady supply chain for tech industries.
- I am hopeful that domestic production will lead to more innovation and better work opportunities for me and my peers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 7 |
| Year 5 | 10 | 7 |
| Year 10 | 10 | 6 |
| Year 20 | 10 | 6 |
Automotive Engineer (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The tax incentive is excellent news for the automotive sector which increasingly relies on semiconductors.
- I'm optimistic it will secure supply chains and possibly lower costs in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Economist (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I see the policy as a strategic economic move that could significantly impact US GDP.
- However, I am cautious; the actual execution and uptake by tech companies will determine its success.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Factory Worker (Detroit, MI)
Age: 51 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I hope the policy brings more jobs and keeps our factory competitive.
- It could mean better job security for workers like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Graduate Student (Raleigh, NC)
Age: 23 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- The policy could boost job prospects for new graduates entering the semiconductor field.
- Investment in this area aligns with my career goals and future aspirations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Tech Startup Entrepreneur (Chicago, IL)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- This policy might lower costs for semiconductor-based products, boosting my startup's potential.
- However, actual benefits depend on how much the market actually expands domestically.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired Electrical Engineer (Pittsburgh, PA)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 1.0 years
Commonness: 9/20
Statement of Opinion:
- I think it's good to reinvest in the semiconductor industry.
- Back in my day, we were on the forefront but have slowly lagged behind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 3 |
High School Teacher (Phoenix, AZ)
Age: 49 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- Any policy that stimulates the economy and provides more job opportunities is generally good.
- I'm interested in seeing if this leads to more STEM education focus and resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Small Business Owner (Reno, NV)
Age: 58 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- If local production drives down costs, it could really help my business.
- I'm cautiously optimistic that this will trickle down to small-scale enterprises.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Data Analyst (Newark, NJ)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- The policy could enhance tech data flows, crucial for my job and industry.
- Increased stability in semiconductor supply can significantly impact our operational strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $350000000 (Low: $300000000, High: $400000000)
Year 2: $400000000 (Low: $350000000, High: $450000000)
Year 3: $450000000 (Low: $400000000, High: $500000000)
Year 5: $550000000 (Low: $500000000, High: $600000000)
Year 10: $900000000 (Low: $800000000, High: $1000000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The specific provisions and eligibility criteria for the tax credits will significantly affect their uptake and the overall cost to the government.
- The competitiveness of global semiconductor markets and supply chains could affect the efficacy of these credits in promoting US-based production.
- Potential fluctuations in the semiconductor industry, such as changes in consumer demand and advancements in technology, could impact the effectiveness of the FABS Act.
- The balance between direct fiscal losses and anticipated indirect economic benefits through growth, jobs, and innovations need further analysis.