S. 4569: Protecting Circuit Boards and Substrates Act

The Protecting Circuit Boards and Substrates Act is a proposed law aimed at encouraging the domestic production of printed circuit boards (PCBs) in the United States. Here’s a summary of its main components:

Incentives for Domestic PCB Production

The bill introduces a tax credit specifically for businesses that purchase or acquire printed circuit boards that are fabricated within the United States. The key details include:

• Credit Amount: Businesses would receive a credit equal to 25% of the costs incurred to buy or acquire these domestically produced printed circuit boards during the taxable year.

Definitions

To clarify what the legislation covers:

• Fabricated: The term refers to the process of using raw materials to manufacture a connected structure that features both electrically conductive and non-conductive elements.
• Printed Circuit Board: This is defined as a composite structure made up of different materials layered together to provide electrical connections and interconnections with micro-electronics and other electronics systems.

Implementation and Regulations

The Secretary of the Treasury, in conjunction with the Secretaries of Commerce and Labor, is tasked with creating any necessary regulations and guidelines to enforce this act.

Tax Credit Integration

The proposed PCB credit would be added as part of the general business credit under existing tax law, which means it would work in conjunction with other business tax credits available to firms.

Effective Date

The provisions of this act will apply to amounts paid or incurred after December 31, 2025, meaning the credit would not be available for expenses before that date.

Relevant Companies

• ADI (Analog Devices, Inc.) - A company that designs, manufactures, and markets analog, mixed-signal, and digital signal processing integrated circuits, which could see increased demand for domestically manufactured PCBs.
• INTC (Intel Corporation) - As a leading semiconductor manufacturer, Intel would potentially benefit from localized PCB production as it could reduce costs and improve supply chain stability.
• TSM (Taiwan Semiconductor Manufacturing Company Limited) - Although primarily based in Taiwan, any US-based projects or collaborations with PCB manufacturers could be impacted by this bill encouraging domestic production.