Washington, DC, April 7, 2025— The Compressed Gas Association (CGA) has joined a coalition of industry leaders in signing a letter urging the U.S. Department of the Treasury to modify Section 48D regulations under the CHIPS Act. The proposed change would ensure that facilities manufacturing consumable materials, chemicals, or gases are classified as “semiconductor manufacturing equipment,” making them eligible for the investment tax credit.
This adjustment would provide critical support to CGA members and others in the supply chain, encouraging investment in new or expanded domestic facilities. Ensuring that companies producing consumable materials, chemicals, and gases are eligible for the tax credit will drive further domestic investment. A stronger and more resilient domestic semiconductor industry is vital to reinforcing both national and economic security.
“Access to the CHIPS Act tax credit will incentivize greater investment in domestic production, bolstering the broader semiconductor supply chain,” said [CGA Representative]. “Compressed gases and chemicals are essential to semiconductor manufacturing, and ensuring their production is supported will help strengthen America’s technological leadership.”
The coalition’s letter, submitted on March 25, highlights the importance of a robust and diversified supply chain to meet the growing demand for semiconductors in industries ranging from consumer electronics to national defense. This change aligns with bipartisan efforts to strengthen America’s semiconductor supply chain, fostering economic and national security benefits.
For more information, see the letter in the downloads.
About the Compressed Gas Association
The Compressed Gas Association (CGA) is a global leader in the production, storage, distribution, and application of industrial, medical, food, and specialty gases and equipment, with nearly 400 safety standards developed since 1913. Recognized by international organizations like ISO, NFPA, and the United Nations, CGA’s standards are widely adopted by regulatory bodies worldwide. The association supports over 34,000 jobs in the U.S. and contributes over $10 billion to the American economy, with each job in the industry creating more than five additional jobs in related sectors. CGA is committed to promoting safety, innovation, and professional development in the compressed gas sector.