Departments of Commerce and Treasury Release Notice of Proposed Rulemaking Regarding CHIPS “Guardrails”

Covington & Burling – On March 21, 2023, the Department of Commerce published a Notice of Proposed Rulemaking to implement certain provisions of the CHIPS and Science Act of 2022 (“CHIPS Act”) that place restrictions on certain activities of businesses receiving federal funding pursuant to the CHIPS Act.  On the same day, the Department of the Treasury also published a Notice of Proposed Rulemaking to implement the Advanced Manufacturing Investment Credit, including its own restrictions on certain activities that, in broad strokes, parallel the Commerce Guardrails.