Protecting Circuit Boards and Substrates Act

Summary

Creates a 25% federal business tax credit for purchases of printed circuit boards and integrated circuit substrates that are fabricated in the United States, and establishes a Commerce Department financial assistance program to support construction, expansion, modernization, and R&D for U.S. production of those components. The Commerce program can award up to $300 million per project (with a higher cap possible for declared national-security needs), includes clawback and foreign-entity exclusion rules, requires interagency coordination and GAO reviews, and is authorized $3 billion for FY2026 with availability through FY2065.

• Creates a 25% federal business tax credit for purchases of U.S.-fabricated printed circuit boards and integrated circuit substrates.
• Establishes a Commerce Department financial assistance program to incentivize domestic construction, expansion, modernization, and R&D for PCBs and substrates.
• Commerce awards generally capped at $300 million per project; higher awards may be approved for national security after interagency review and presidential notice to Congress.
• Authorizes $3.0 billion for FY2026 to implement the Commerce program, with funds available through FY2065.
• Includes foreign-entity-of-concern exclusions, progressive clawbacks for missed deadlines, and full recovery for knowing collaboration with covered foreign entities.
• Treasury must adopt regulations and guidance to implement the tax credit; the credit is added to general business credit rules.
• Requires extensive interagency coordination (Defense, DNI, State, Energy, SBA, NIST, CISA, OFAC, MBDA) and GAO reviews every two years for ten years.
• Targets strengthening U.S. supply chains and domestic capacity for critical electronics components, with R&D and workforce training expectations.
• Applies the tax credit to amounts paid or incurred after December 31, 2025.