Sponsors (11)
The bill boosts U.S. PCB and integrated circuit substrate production, jobs, workforce training, and supply‑chain security through grants and a buyer tax credit, but it comes with substantial federal cost, potential market distortions, administrative burdens, and constraints on multinational participation.
U.S. manufacturers, small-business owners, and tech workers will see increased domestic PCB and integrated circuit substrate production capacity and related jobs because the bill provides grants and incentives to build and modernize facilities.
U.S. firms, taxpayers, and national security stakeholders will benefit from stronger electronics supply-chain resilience because the program prioritizes projects that relocate production away from foreign entities of concern and bans funding to those entities.
Businesses that buy U.S.-fabricated printed circuit boards or integrated circuit substrates will receive a 25% tax credit on qualifying costs, lowering their effective purchase costs and increasing demand for domestic suppliers.
Taxpayers will face increased federal costs and potential revenue loss because the bill authorizes a $3 billion grant program and creates a 25% tax credit, which could raise deficits or crowd out other spending absent offsets.
Firms that do not purchase qualifying domestic substrates will receive no tax benefit, creating unequal competitive advantages across companies and potentially distorting market choices.
Small firms and covered entities will face significant administrative and compliance burdens from extensive reporting, information requests, and eligibility rules, which may disadvantage applicants despite some exemptions.
Based on analysis of 3 sections of legislative text.
Creates a 25% business tax credit for U.S.-fabricated printed circuit boards and integrated circuit substrates and authorizes Commerce incentives and grants to boost domestic PCB manufacturing and R&D.
Introduced May 23, 2025 by Blake D. Moore · Last progress May 23, 2025
Creates a new 25% business tax credit for purchases of printed circuit boards and integrated circuit substrates that are fabricated in the United States, and authorizes federal incentives and financial assistance aimed at expanding U.S. PCB and integrated circuit substrate manufacturing and R&D. The Treasury Department must write regulations for the tax credit in consultation with Commerce, and Commerce is authorized to provide covered incentives and grants to eligible manufacturers, research entities, minority- and women-owned firms, and institutions of higher education. The measure defines key technical and programmatic terms (e.g., printed circuit board, integrated circuit substrate, covered entity, foreign entity of concern, minority-serving institutions) and links program eligibility and safeguards to national-security considerations. The tax credit applies to amounts paid or incurred after December 31, 2025; other program timing and funding details will be set by implementing regulations and Commerce program actions.