Sec. 10001. Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund
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There is established in the Treasury of the United States a fund to be known as the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund (referred to in this subsection as the Fund ) for the Secretary of Commerce to carry out sections 9902 and 9906 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ). Amounts in the Fund to carry out section 9906 of Public Law 116–283 shall be transferred to and merged with accounts within the Department of Commerce to be used for such purposes. In addition to amounts otherwise available for such purposes, there is appropriated to the Fund established in subsection (a)(1), out of amounts in the Treasury not otherwise appropriated— for fiscal year 2022, $24,000,000,000, to remain available until expended, of which $19,000,000,000 shall be for section 9902 of Public Law 116–283 , $2,000,000,000 shall be for subsection
(c)of section 9906 of Public Law 116–283 , $2,500,000,000 shall be for subsection
(d)of section 9906 of Public Law 116–283 , and $500,000,000 shall be for subsections
(e)and
(f)of section 9906 of Public Law 116–283 ; for fiscal year 2023, $7,000,000,000 to remain available until expended, of which $5,000,000,000 shall be for section 9902 of Public Law 116–283 and $2,000,000,000 shall be for subsections (c), (d), (e), and
(f)of section 9906 of Public Law 116–283 ; for fiscal year 2024, $6,300,000,000, to remain available until expended, of which $5,000,000,000 shall be for section 9902 of Public Law 116–283 and $1,300,000,000 shall be for subsections (c), (d), (e), and
(f)of section 9906 of Public Law 116–283 ; for fiscal year 2025, $6,100,000,000, to remain available until expended, of which $5,000,000,000 shall be for section 9902 of Public Law 116–283 and $1,100,000,000 shall be for subsections (c), (d), (e), and
(f)of section 9906 of Public Law 116–283 ; and for fiscal year 2026, $6,800,000,000, to remain available until expended, of which $5,000,000,000 shall be for section 9902 of Public Law 116– 283 and $1,800,000,000 shall be for subsections (c), (d), (e), and
(f)of section 9906 of Public Law 116–283 . The Secretary of Commerce may use— up to $6,000,000,000 of the amounts made available for fiscal year 2022 for section 9902 of Public Law 116–283 for the cost of direct loans and loan guarantees, as authorized by section 9902 of Public Law 116–283 , provided that— such costs, including the cost of modifying such loans and loan guarantees shall be as defined in section 502 of the Congressional Budget Act of 1974; and these funds are available to subsidize gross obligations for the principal amount of direct loans and total loan principal, any part of which is to be guaranteed, not to exceed $75,000,000,000; and up to 2 percent of the amounts made available in each fiscal year for salaries and expenses, administration, and oversight purposes to carry out sections 9902, 9904 and 9906 of Public Law 116–283 , of which $5,000,000 in each of fiscal years 2022 through 2026 shall be transferred to the Office of Inspector General of the Department of Commerce to oversee expenditures from the Fund. The requirement to transfer and merge funds for carrying out section 9906 of Public Law 116–283 shall not apply to amounts used pursuant to this provision. Of the amount available in fiscal year 2022 to implement section 9902 of Public Law 116–283 , $2,000,000,000 shall be to provide Federal financial assistance to covered entities to incentivize investment in facilities and equipment in the United States for the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes. In addition to the procedures, eligibility, and considerations for review specified in subsection 9902(a)(2) of Public Law 116–283 , in order for an entity to qualify to receive Federal financial assistance under this paragraph, the covered entity shall— provide equipment or materials for the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes in the United States; or fabricate, assemble using advanced packaging, or test semiconductors at mature technology nodes in the United States; and commit to using any Federal financial assistance received under this section to increase the production of semiconductors at mature technology nodes. ln addition to the considerations described in subsection 9902(a)(2)(C) of Public Law 116–283 , in granting Federal financial assistance under this paragraph, the Secretary may consider whether a covered entity produces or supplies equipment or materials used in the fabrication, assembly, testing, or advanced packaging of semiconductors at mature technology nodes that are necessary to support a critical manufacturing industry. ln awarding Federal financial assistance to covered entities under this paragraph, the Secretary shall give priority to covered entities that support the resiliency of semiconductor supply chains for critical manufacturing industries in the United States. In this paragraph, the term critical manufacturing industry — means an industry that is assigned a North American Industry Classification System code beginning with 31, 32, or 33, and for which the industry components that are assigned a North American Industry Classification System code beginning with the same 4 digits as the industry— manufacture primary products and parts, the sum of which account for not less than 5 percent of the manufacturing value added by industry gross domestic product of the United States; and employ individuals for primary products and parts manufacturing activities that, combined, account for not less than 5 percent of manufacturing employment in the United States; and may include any other manufacturing industry designated by the Secretary based on the relevance of the manufacturing industry to the national and economic security of the United States, including the impacts of job losses. In this paragraph, the term mature technology node has the meaning given the term by the Secretary of Commerce. The President shall submit to Congress detailed account, program, and project allocations of the full amount made available under subsection (a)(2)— for fiscal years 2022 and 2023, not later than 90 days after the date of enactment of this Act; and for each subsequent fiscal year through 2026, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. The Committees on Appropriations of the House of Representatives and the Senate may provide for alternate allocation of amounts made available under subsection (a)(2), including by account, program, and project. If Congress has not enacted legislation establishing alternate allocations, including by account, program, and project, by the date on which the Act making full-year appropriations for the Department of Commerce, Justice, Science, and Related Agencies for the applicable fiscal year is enacted into law, only then shall amounts made available under subsection (a)(2) be allocated by the President or apportioned or allotted by account, program, and project pursuant to title 31, United States Code. If Congress enacts legislation establishing alternate allocations, including by account, program, and project, for amounts made available under subsection (a)(2) that are less than the full amount appropriated under that subsection, the difference between the amount appropriated and the alternate allocation shall be allocated by the President and apportioned and allotted by account, program, and project pursuant to title 31, United States Code. There is established in the Treasury of the United States a fund to be known as the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Defense Fund (referred to in this subsection as the Fund ) to provide for research, development, test and evaluation, workforce development, and other requirements that are unique to the Department of Defense and the intelligence community, including those requirements that are necessary to carry out section 9903(b) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ). Amounts in the Fund shall be transferred to and merged with accounts within the Department of Defense to be used for such purposes. Amounts in the Fund or transferred to and merged with accounts within the Department of Defense may not be used for construction of facilities. In addition to amounts otherwise available for such purposes, there is appropriated to the Fund established in subsection (b)(1), out of amounts in the Treasury not otherwise appropriated— for fiscal year 2022, $400,000,000, to remain available until September 30, 2022; for fiscal year 2023, $400,000,000, to remain available until September 30, 2023; for fiscal year 2024, $400,000,000, to remain available until September 30, 2024; for fiscal year 2025, $400,000,000, to remain available until September 30, 2025; and for fiscal year 2026, $400,000,000, to remain available until September 30, 2026. The President shall submit to Congress detailed account, program element, and project allocations of the full amount made available under subsection (b)(2)— for fiscal years 2022 and 2023, not later than 90 days after the date of enactment of this Act; and for each subsequent fiscal year through 2026, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. The Committees on Appropriations of the House of Representatives and the Senate may provide for alternate allocation of amounts made available under subsection (b)(2), including by account, program element, and project. If Congress has not enacted legislation establishing alternate allocations, including by account, program element, and project, by the date on which the Act making full-year appropriations for the Department of Defense for the applicable fiscal year is enacted into law, only then shall amounts made available under subsection (b)(2) be allocated by the President or apportioned or allotted by account, program element, and project pursuant to title 31, United States Code. If Congress enacts legislation establishing alternate allocations, including by account, program element, and project, for amounts made available under subsection (b)(2) that are less than the full amount appropriated under that subsection, the difference between the amount appropriated and the alternate allocation shall be allocated by the President and apportioned and allotted by account, program element, and project pursuant to title 31, United States Code. There is established in the Treasury of the United States a fund to be known as the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America International Technology Security and Innovation Fund (referred to in this subsection as the Fund ) to provide for international information and communications technology security and semiconductor supply chain activities, including to support the development and adoption of secure and trusted telecommunications technologies, secure semiconductors, secure semiconductors supply chains, and other emerging technologies and to carry out sections 9905 and 9202(a)(2) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ), as appropriate. Amounts in the Fund shall be transferred by the Secretary of State to accounts within the Department of State, the United States Agency for International Development, the Export-Import Bank, and the United States International Development Finance Corporation, as appropriate, to be used for such purposes and under the terms and conditions of the account to which transferred. In addition to amounts otherwise available for such purposes, there is appropriated to the Fund established in subsection (c)(1), out of amounts in the Treasury not otherwise appropriated— for fiscal year 2022, $100,000,000, to remain available until September 30, 2026; for fiscal year 2023, $100,000,000, to remain available until September 30, 2027; for fiscal year 2024, $100,000,000, to remain available until September 30, 2028; for fiscal year 2025, $100,000,000, to remain available until September 30, 2029; and for fiscal year 2026, $100,000,000, to remain available until September 30, 2030. In carrying out this subsection, the Secretary of State may use up to $5,000,000 of the amounts made available in each fiscal year for the Fund for salaries and expenses, administration, and oversight purposes, of which $500,000 in each of fiscal years 2022 through 2026 shall be transferred to the Office of Inspector General of the Department of State to oversee expenditures under the Fund. The President shall submit to Congress detailed account, program, project, and activity allocations of the full amount made available under subsection (c)(2)— for fiscal years 2022 and 2023, not later than 90 days after the date of enactment of this Act; and for each subsequent fiscal year through 2026, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. The Committees on Appropriations of the House of Representatives and the Senate may provide for alternate allocation of amounts made available under subsection (c)(2), including by account, program, project, and activity. If Congress has not enacted legislation establishing alternate allocations, including by account, program, project, and activity, by the date on which the Act making full-year appropriations for the Department of State, Foreign Operations, and Related Programs for the applicable fiscal year is enacted into law, only then shall amounts made available under subsection (c)(2) be allocated by the President or apportioned or allotted by account, program, project, and activity pursuant to title 31, United States Code. If Congress enacts legislation establishing alternate allocations, including by account, program, project, and activity, for amounts made available under subsection (c)(2) that are less than the full amount appropriated under that subsection, the difference between the amount appropriated and the alternate allocation shall be allocated by the President and apportioned and allotted by account, program, project, and activity pursuant to title 31, United States Code. Section 255(g)(1)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 905(g)(1)(A) ) is amended by inserting after Continuing Fund, Southwestern Power Administration (89–5649–0–2–271). the following: Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund. Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Defense Fund. Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America International Technology Security and Innovation Fund. . The budgetary effects of this section shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. A person receiving amounts appropriated under this section or from a covered fund may not use such amounts— to purchase an equity security that is listed on a national securities exchange of such person or any parent company of such person; or to pay dividends or make other capital distributions with respect to the common stock (or equivalent interest) of the person. In this subsection, the term covered fund means— the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund; the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Defense Fund; and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America International Technology Security and Innovation Fund.
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Sec. 10001
Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund
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