Sponsors (23)
The bill aims to rebuild U.S. PCB and substrate manufacturing—creating jobs, training, and supply-chain resilience through tax credits, grants, and R&D—while imposing meaningful fiscal costs, compliance burdens, selective eligibility, and uncertainty tied to national-security reviews.
U.S. electronics manufacturers and workers see expanded domestic PCB/substrate production, strengthening supply-chain resilience and supporting manufacturing jobs.
Domestic manufacturers and buyers of printed circuit boards and substrates receive a 25% tax credit on qualifying purchases, lowering equipment and input costs and directly reducing tax liability for eligible firms.
Small businesses and manufacturers gain access to grants and awards to build or modernize U.S. PCB and substrate facilities, reducing upfront capital barriers to domestic investment.
Taxpayers face fiscal costs from the new tax credit and up to $3 billion in authorized spending to subsidize industry development, which could increase deficits or crowd out other priorities.
Recipients and the government will face added administrative and compliance burdens — new regulations, reporting, information-sharing, clawbacks, and IRS/agency requirements — raising costs and red tape for firms and agencies.
Firms that rely on imported circuit boards or substrates receive no direct benefit from the credit/grants, creating uneven advantages and potential competitive harm for import-dependent businesses.
Based on analysis of 3 sections of legislative text.
Establishes a 25% tax credit for U.S.-fabricated printed circuit boards and substrates and authorizes a Commerce program to support domestic PCB/substrate manufacturing and R&D incentives.
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 (PCBs) and integrated circuit substrates that are fabricated in the United States, and sets up definitions and authorities for a Commerce Department program to provide financial incentives, grants, and other support for domestic PCB and substrate manufacturing and R&D. The tax credit is added to the general business credit and becomes effective for amounts paid or incurred after December 31, 2025; the Commerce program language defines eligible entities, covered incentives, and cross-references existing definitions for HBCUs, minority-serving institutions, and foreign entities of concern. The bill directs Treasury and Commerce to issue implementing guidance and regulations and targets workforce training, real property and R&D incentives, and other tools to encourage onshore production of key electronic components and substrates. It focuses on strengthening domestic supply chains for microelectronics while applying screening definitions for foreign entities of concern.