Sec. 102. CREATING HELPFUL INCENTIVES TO PRODUCE SEMICONDUCTORS (CHIPS) FOR AMERICA FUND
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## SEC. 102 CREATING HELPFUL INCENTIVES TO PRODUCE SEMICONDUCTORS (CHIPS) FOR AMERICA FUND ###
(a)CHIPS for America Fund ####
(1)Establishment 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, 9904, and 9906 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652, 4654, and 4656; Public Law 116-283). Amounts in the Fund to carry out sections 9904 and 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, except that amounts transferred to carry out section 9904 of Public Law 116-283 shall remain available until September 30, 2025. ####
(2)Appropriation #####
(A)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— ######
(i)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; ######
(ii)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; ######
(iii)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; ######
(iv)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 ######
(v)for fiscal year 2026, $6,600,000,000, to remain available until expended, of which $5,000,000,000 shall be for section 9902 of Public Law 116- 283 and $1,600,000,000 shall be for subsections (c), (d), (e), and
(f)of section 9906 of Public Law 116-283. #####
(B)Direct loans and loan guarantees The Secretary of Commerce may use— ######
(i)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— ######
(I)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 ######
(II)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; ######
(ii)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 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; and ######
(iii)up to $2,300,000 of the amounts made available in fiscal year 2022 to carry out section 9904 of Public Law 116-283. ####
(3)Assistance for mature technology nodes Of the amount available in fiscal year 2022 to implement section 9902 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652), $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 packaging of semiconductors at mature technology nodes under subsection
(e)of that section, as added by section 103 of this Act. ####
(4)Allocation authority #####
(A)Submission of cost estimates The President shall submit to Congress detailed account, program, and project allocations of the full amount made available under subsection (a)(2)— ######
(i)for fiscal years 2022 and 2023, not later than 60 days after the date of enactment of this Act; and ######
(ii)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. #####
(B)Alternate allocation ######
(i)In general 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. ######
(ii)Allocation by president ######
(I)No alternate allocations 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 Departments of Commerce and 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. ######
(II)Insufficient alternate allocation 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. ###
(b)CHIPS for America Defense Fund ####
(1)Establishment 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 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 (15 U.S.C. 4653(b)). 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. ####
(2)Appropriation 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— #####
(A)for fiscal year 2023, $400,000,000, to remain available until September 30, 2023; #####
(B)for fiscal year 2024, $400,000,000, to remain available until September 30, 2024; #####
(C)for fiscal year 2025, $400,000,000, to remain available until September 30, 2025; #####
(D)for fiscal year 2026, $400,000,000, to remain available until September 30, 2026; and #####
(E)for fiscal year 2027, $400,000,000, to remain available until September 30, 2027. ####
(3)Allocation authority #####
(A)Submission of cost estimates The President shall submit to Congress detailed account, program element, and project allocations of the full amount made available under subsection (b)(2)— ######
(i)for fiscal year 2023, not later than 60 days after the date of enactment of this Act; and ######
(ii)for each subsequent fiscal year through 2027, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. #####
(B)Alternate allocation ######
(i)In general 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. ######
(ii)Allocation by president ######
(I)No alternate allocations 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. ######
(II)Insufficient alternate allocation 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. ###
(c)CHIPS for America International Technology Security and Innovation Fund ####
(1)Establishment 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 (15 U.S.C. 4655 and 47 U.S.C. 906(a)(2)), 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. ####
(2)Appropriation #####
(A)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— ######
(i)for fiscal year 2023, $100,000,000, to remain available until September 30, 2027; ######
(ii)for fiscal year 2024, $100,000,000, to remain available until September 30, 2028; ######
(iii)for fiscal year 2025, $100,000,000, to remain available until September 30, 2029; ######
(iv)for fiscal year 2026, $100,000,000, to remain available until September 30, 2030; and ######
(v)for fiscal year 2027, $100,000,000, to remain available until September 30, 2031. #####
(B)Use 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 2023 through 2027 shall be transferred to the Office of Inspector General of the Department of State to oversee expenditures under the Fund. ####
(3)Allocation authority #####
(A)Submission of cost estimates The President shall submit to Congress detailed account, program, project, and activity allocations of the full amount made available under subsection (c)(2)— ######
(i)for fiscal year 2023, not later than 90 days after the date of enactment of this Act; and ######
(ii)for each subsequent fiscal year through 2027, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. #####
(B)Alternate allocation ######
(i)In general 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. ######
(ii)Allocation by president ######
(I)No alternate allocations 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. ######
(II)Insufficient alternate allocation 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. ###
(d)Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund ####
(1)Establishment 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 Workforce and Education Fund” (referred to in this subsection as the “Fund”) for the National Science Foundation for microelectronics workforce development activities to meet the requirements under section 9906 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4656). ####
(2)Appropriation In addition to amounts otherwise available for such purposes, there is appropriated to the Fund established in subsection (d)(1), out of amounts in the Treasury not otherwise appropriated— #####
(A)for fiscal year 2023, $25,000,000, to remain available until expended; #####
(B)for fiscal year 2024, $25,000,000, to remain available until expended; #####
(C)for fiscal year 2025, $50,000,000, to remain available until expended; #####
(D)for fiscal year 2026, $50,000,000, to remain available until expended; and #####
(E)for fiscal year 2027, $50,000,000, to remain available until expended. ####
(3)Allocation authority #####
(A)Submission of cost estimates The President shall submit to Congress detailed account, program, and project allocations of the full amount made available under paragraph (2)— ######
(i)for fiscal year 2023, not later than 60 days after the date of enactment of this Act; and ######
(ii)for each subsequent fiscal year through 2027, as part of the annual budget submission of the President under section 1105(a) of title 31, United States Code. #####
(B)Alternate allocation ######
(i)In general The Committees on Appropriations of the House of Representatives and the Senate may provide for alternate allocation of amounts made available under paragraph (2), including by account, program, and project. ######
(ii)Allocation by president ######
(I)No alternate allocations 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 Departments of Commerce and Justice, Science, and Related Agencies for the applicable fiscal year is enacted into law, only then shall amounts made available under subsection (d)(2) be allocated by the President or apportioned or allotted by account, program, and project pursuant to title 31, United States Code. ######
(II)Insufficient alternate allocation If Congress enacts legislation establishing alternate allocations, including by account, program, and project, for amounts made available under subsection (d)(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. ###
(e)Sequestration 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.Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund”". ###
(f)Budgetary Effects ####
(1)Statutory paygo scorecards 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 (2 U.S.C. 933(d)). ####
(2)Senate paygo scorecards The budgetary effects of this section shall not be entered on any PAYGO scorecard maintained for purposes of section 4106 of H. Con. Res. 71 (115th Congress). ####
(3)Classification of budgetary effects Notwithstanding Rule 3 of the Budget Scorekeeping Guidelines set forth in the joint explanatory statement of the committee of conference accompanying Conference Report 105-217 and section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985, the budgetary effects of this section shall not be estimated— #####
(A)for purposes of section 251 of such Act; #####
(B)for purposes of an allocation to the Committee on Appropriations pursuant to section 302(a) of the Congressional Budget Act of 1974; and #####
(C)for purposes of paragraph (4)(C) of section 3 of the Statutory Pay-As-You-Go Act of 2010 as being included in an appropriation Act. ###
(g)Limitation on Using Amounts for Stock Buybacks or the Payment of Dividends ####
(1)In general A person receiving amounts appropriated under this section or from a covered fund may not use such amounts, as determined using the criteria for eligible uses of amounts under sections 9902(a)(4) and 9905(a)(4) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652(a)(4), 15 U.S.C. 4655(a)(4)), the activities under section 9903(b) of such Act (15 U.S.C. 4653(b)), andthe functions under 9906(c)(2) of such Act (15 U.S.C. 4656(c)(2)) — #####
(A)to purchase an equity security that is listed on a national securities exchange of such person or any parent company of such person; or #####
(B)to pay dividends or make other capital distributions with respect to the common stock (or equivalent interest) of the person. ####
(2)Covered fund In this subsection, the term “covered fund” means— #####
(A)the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund; #####
(B)the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Defense Fund; #####
(C)the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America International Technology Security and Innovation Fund; and #####
(D)the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund.
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U.S. Code
- Semiconductor incentives§ 4652
- Department of Defense§ 4653
- Funding for development and adoption of measurably secure semiconductors and measurably secure semiconductors supply chains§ 4655
- Wireless supply chain innovation and multilateral security§ 906
- Advanced microelectronics research and development§ 4656
- Exempt programs and activities§ 905
- PAYGO estimates and PAYGO scorecards§ 933
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Sec. 102
CREATING HELPFUL INCENTIVES TO PRODUCE SEMICONDUCTORS (CHIPS) FOR AMERICA FUND
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