The National Assembly’s Strategy and Finance Committee has passed a revised bill that seeks to raise semiconductor firms’ integrated investment tax credit rate by five percentage points.

The committee passed the bill that seeks revisions to the Act on Restriction on Special Cases Concerning Taxation during a full session on Tuesday. 

If the National Assembly passes the so-called “K-Chips Act” during a plenary session, the tax credit rates for chipmakers’ facilities investment are expected to rise from 15 percent  to 20 percent for conglomerates and from 25 percent to 30 percent for small and midsize enterprises.

The finance committee also passed a bill that would extend existing tax credits for research and development in new growth, source technology and national strategic technologies by five years through the end of 2029, and for semiconductors by seven years through the end of 2031.