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by rsfern 430 days ago
CHIPS incentive funding is way bigger than just Intel, so it’s a bit disingenuous to write off the whole program just because of one (or even several) high profile bad actor. We should have a nuanced discussion and fix the shortcomings of our programs, but at least assess things in a balanced way.

If you check the transcript of the confirmation hearing for the current Commerce secretary, practically every Senator brags about their state’s CHIPS funded R&D hub. Lots of growth in small and medium businesses there. And CHIPS incentive funding played a huge role in bringing the new TSMC fab in Arizona

https://www.azcentral.com/story/money/business/jobs/2024/04/...
1 comments
imchillyb 429 days ago
R&D is a cost center that can no longer be written off of a company’s taxes.

I don’t believe that cost centers are a good example of returning manufacturing onshore. Or an example of a state using federal funding well.

Cost centers are not a good investment for federal funding, without a clear path to paying back our taxed dollars.

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hcknwscommenter 429 days ago
This entire post is so wrong, it is difficult to know where to start. The first sentence about taxes is wrong. The second statement is an entirely unsupported opinion. The final statement miscategorized "cost centers" as some sort of federal investment? As for "clear path", the road US exceptionalism is paved with the gold derived from sensible investments in R&D and tech advancement. There was no clear path to paying back our investment in the federal highway system, but it did pay back indeed. There was no clear path to paying back our investments in basic physics, chemistry, and biology, but it did pay back indeed.
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like_any_other 429 days ago
> R&D is a cost center that can no longer be written off of a company’s taxes.

Can you elaborate on this? It was my understanding a company only pays taxes on profit. So isn't the revenue that goes into R&D effectively taxed at 0%, since at that point it's not yet profit? I.e. only dividend payouts get taxed.

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kevin_thibedeau 429 days ago
2017 Tax Cuts and Jobs Act made it less beneficial to use R&D for tax credits because they had to be amortized over five years. Not good when you're an MBA looking to financially engineer your way into a fat bonus.
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