H.R. 3597: Protecting Circuit Boards and Substrates Act

This bill, titled the "Protecting Circuit Boards and Substrates Act," focuses on promoting domestic manufacturing of printed circuit boards (PCBs) and integrated circuit substrates in the United States through various incentives. Below are the main components of the bill:

Tax Credits for Domestic Purchase

The bill introduces a tax credit amounting to 25% for businesses that purchase printed circuit boards and integrated circuit substrates manufactured in the United States. This means that companies can reduce their tax liability by a quarter of the amount they spend on these products, encouraging them to source domestically.

Definitions

• Printed Circuit Board: A layered structure of conductive and non-conductive materials used for electrical connections in electronic devices.
• Integrated Circuit Substrate: A thin layer that connects integrated circuits to a printed circuit board, made from conductive and non-conductive materials.

Incentives for Manufacturing and R&D

The bill establishes a program to provide federal financial assistance to entities that invest in the facilities and technologies for manufacturing and researching PCBs and integrated circuit substrates within the U.S. This support can include:

• Assistance for construction, expansion, or modernization of related facilities.
• Funding for workforce training and development programs, especially targeting economically disadvantaged groups.

Application Process for Financial Assistance

Entities seeking financial assistance must submit applications that demonstrate their intention to invest in relevant projects. They must also show a commitment to workforce training and community investment, including partnerships with educational institutions for training programs. Small businesses are exempt from some of these requirements.

Limitations on Foreign Entities

Entities classified as foreign entities of concern are barred from receiving any financial assistance under this program. This includes any associations or collaborations with such entities that could pose national security risks.

Review and Oversight

The bill ensures continuous oversight through biennial reviews of the program by the Comptroller General for a decade after the first award is made. This review will assess the effectiveness of the program, the outcomes of supported projects, and how it aligns with national security interests.

Funding Authorization

The bill authorizes a budget of $3 billion for fiscal year 2026, allocated for the purposes mentioned in the legislation, with funds available until 2065.

Effective Date

The provisions related to tax credits and assistance programs will take effect for amounts paid or incurred after December 31, 2025.

Relevant Companies

None found