[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3597 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3597
To provide incentives for the domestic production of printed circuit
boards, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2025
Mr. Moore of Utah (for himself and Mr. Krishnamoorthi) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Energy and Commerce, and Science,
Space, and Technology, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide incentives for the domestic production of printed circuit
boards, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Circuit Boards and
Substrates Act''.
SEC. 2. TAX CREDIT FOR THE PURCHASE OR ACQUISITION OF PRINTED CIRCUIT
BOARDS & INTEGRATED CIRCUIT SUBSTRATES MANUFACTURED IN
THE UNITED STATES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 45Z the following new section:
``SEC. 45AA. CREDIT FOR THE PURCHASE OR ACQUISITION OF PRINTED CIRCUIT
BOARDS FABRICATED IN THE UNITED STATES.
``(a) In General.--For the purposes of section 38, the credit
determined under this section for the taxable year is an amount equal
to 25 percent of the cost paid or incurred by the taxpayer for the
purchase or acquisition of printed circuit boards and Integrated
Circuit Substrates fabricated in the United States for the taxable
year.
``(b) Definitions.--For the purposes of this section--
``(1) Printed circuit board.--The term `printed circuit
board' has the meaning given such term in section 3(a) of the
Protecting Circuit Boards and Substrates Act.
``(2) Fabricated.--The term `fabricated' means the use of
raw materials to manufacture a connected composite structure
featuring electrically conductive and non-conductive elements
by subtractive, additive, or other technique.
``(3) Integrated circuit substrate.--The term `integrated
circuit substrate' means a thin composite structure of layered
electrically conductive materials and organic electrically non-
conductive materials that electrically connects integrated
circuits to an underlying structure, including a printed
circuit board.
``(c) Regulations and Guidance.--The Secretary shall, in
consultation with the Secretary of Commerce, promulgate such
regulations and guidance as may be necessary or appropriate to carry
out this section.''.
(b) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45Z the following new
item:
``Sec. 45AA. Credit for the purchase or acquisition of printed circuit
boards fabricated in the United States.''.
(c) Credit Made Part of General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended--
(1) in paragraph (37), by striking ``plus'',
(2) in paragraph (38), by striking the period at the end
and inserting ``, plus'', and
(3) by adding at the end the following new paragraph:
``(39) the credit for the purchase or acquisition of
printed circuit boards fabricated in the United States
determined under section 45AA.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2025.
SEC. 3. INCENTIVES FOR PRINTED CIRCUIT BOARD MANUFACTURING AND RESEARCH
AND DEVELOPMENT.
(a) Definitions.--In this section:
(1) Active component.--The term ``active component'' means,
with respect to a printed circuit board, an electronic
component within an electronic circuit that relies on an
external power source to control or modify electrical signals.
(2) Covered entity.--The term ``covered entity'' means a
private entity, a consortium of private entities, or a
consortium of public and private entities with the ability to
substantially finance, construct, expand, or modernize a
facility relating to manufacturing or research and development
of printed circuit boards and integrated circuit substrates.
(3) Covered incentive.--The term ``covered incentive''
means--
(A) an incentive used for the purposes of
constructing, expanding, or modernizing a facility
described in paragraph (2) that will be located in the
United States; and
(B) a workforce-related incentive (including an
agreement to provide grants for workforce training or
vocational education), any concession with respect to
real property, funding for research and development
with respect to printed circuit boards, and any other
incentive determined by the Secretary, in consultation
with the Secretary of State, to be appropriate and
related to encouraging investment in facilities and
equipment in the United States for manufacturing or
research and development of printed circuit boards for
public or private companies.
(4) Foreign entity; foreign entity of concern.--The terms
``foreign entity'' and ``foreign entity of concern'' have the
meanings given such terms in section 9901 of the William M.
(Mac) Thornberry National Defense Authorization Act for Fiscal
Year 2021 (Public Law 116-283; 15 U.S.C. 4651).
(5) Historically black college or university.--The term
``historically Black college or university'' has the meaning
given the term ``part B institution'' in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061).
(6) Institution of higher education.--The term
``institution of higher education'' has the meaning given such
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(7) Integrated circuit substrate.--The term ``integrated
circuit substrate'' means a thin composite structure of layered
electrically conductive materials and organic electrically non-
conductive materials that electrically connects integrated
circuits to an underlying structure, including a printed
circuit board.
(8) Intelligence community.--The term ``intelligence
community'' has the meaning given that term in section 3 of the
National Security Act of 1947 (50 U.S.C. 3003).
(9) Minority-owned business and women-owned business.--The
terms ``minority-owned business'' and ``women-owned business''
have the meanings given such terms in section 704B(h) of the
Equal Credit Opportunity Act (15 U.S.C. 1691c-2(h)).
(10) Minority-serving institution.--The term ``minority-
serving institution'' means any of the following:
(A) An Alaska Native-serving institution (as that
term is defined in section 317(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059d(b))).
(B) A Native Hawaiian-serving institution (as that
term is defined in section 317(b) of such Act (20
U.S.C. 1059d(b))).
(C) A Predominantly Black institution (as that term
is defined in section 371(c) of such Act (20 U.S.C.
1067q(c))).
(D) An Asian American and Native American Pacific
Islander-serving institution (as that term is defined
in section 320(b) of such Act (20 U.S.C. 1059g(b))).
(E) A Native American-serving, nontribal
institution (as that term is defined in section 319(b)
of such Act (20 U.S.C. 1059f(b))).
(11) Passive component.--The term ``passive component''
means, with respect to a printed circuit board, an electronic
component within an electronic circuit that functions using the
existing electronic current within the electronic circuit to
control or modify electrical signals.
(12) Person.--The term ``person'' means an individual or
entity.
(13) Printed circuit board.--The term ``printed circuit
board'' means a composite structure of layered electrically
conductive and non-conductive materials that provides
interconnections with other micro-electronics or electronics
systems or subsystems and electrical connections between active
and passive components, and may include components embedded in
the composite structure.
(14) Program.--The term ``Program'' means the program
established under subsection (b)(1).
(15) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(16) Small business.--The term ``small business'' has the
meaning given the term ``small business concern'' under section
3(a) of the Small Business Act (15 U.S.C. 632(a)), except that
section 121.103 of title 13, Code of Federal Regulations (or
any successor regulation) shall not apply.
(17) State.--The term ``State'' means each State of the
United States, the District of Columbia, each commonwealth,
territory, or possession of the United States, and each
federally recognized Indian Tribe.
(18) Veteran-owned business.--The term ``veteran-owned
business'' has the meaning given the term ``small business
concern owned and controlled by veterans'' in section 3(q) of
the Small Business Act (15 U.S.C. 632(q)).
(b) Financial Assistance Program.--
(1) In general.--The Secretary shall establish a program
that, in accordance with the requirements of this section and
subject to the availability of appropriations for such
purposes, provides Federal financial assistance to covered
entities to incentivize investment in facilities and equipment
in the United States for manufacturing or research and
development of printed circuit boards and integrated circuit
substrates.
(2) Procedure.--
(A) In general.--A covered entity shall submit to
the Secretary an application that describes the project
for which the covered entity is seeking financial
assistance under the Program.
(B) Eligibility.--Except as provided in
subparagraph (C), in order for a covered entity to
qualify for financial assistance under the Program, the
covered entity shall demonstrate to the Secretary, in
the application submitted by the covered entity under
subparagraph (A), that--
(i) the covered entity has a documented
interest in carrying out a project that is a
covered incentive; and
(ii) with respect to the project described
in clause (i), the covered entity has--
(I) a plan the Secretary determines
to be executable to sustain the covered
incentive described in clause (i)
without additional Federal financial
assistance under the Program for
facility support;
(II) made commitments to worker and
community investment, including
through--
(aa) training and education
benefits provided by or paid
for by the covered entity; and
(bb) programs to expand
employment opportunity for
economically disadvantaged
individuals; and
(III) secured commitments from
regional educational and training
entities, postsecondary vocational
institutions (defined in section 102(c)
of the Higher Education Act of 1965 (20
U.S.C. 1002(c))), or institutions of
higher education to provide workforce
training, including programming for
training and job placement of
economically disadvantaged individuals.
(C) Small business exception.--The requirements in
subclauses (II) and (III) of subparagraph (B)(ii) do
not apply to small businesses.
(D) Due diligence.--With respect to the review by
the Secretary of an application submitted by a covered
entity under subparagraph (A), the Secretary may not
approve the application unless the Secretary--
(i) confirms that the covered entity has
satisfied the applicable eligibility criteria
under subparagraph (B); and
(ii) determines that the project to which
the application relates is in the interest of
the United States.
(E) Considerations for review.--
(i) In general.--Except as provided in
clause (ii), with respect to the review by the
Secretary of an application submitted by a
covered entity under subparagraph (A), the
Secretary shall consider whether the covered
entity has--
(I) previously received financial
assistance under the Program; and
(II) demonstrated that it is
responsive to the national security
needs or requirements established by
the intelligence community (or an
agency thereof), the National Nuclear
Security Administration, or the
Department of Defense.
(ii) Small businesses excluded.--Clause
(i)(I) does not apply with respect to an
application submitted by a small business under
subparagraph (A).
(F) Preferences.--
(i) In general.--The Secretary shall, when
practicable, give preference with respect to
the approval of an application submitted under
subparagraph (A) by a covered entity that--
(I) is a small business, minority-
owned business, women-owned business,
or veteran-owned business;
(II) expands the United States
production capacity of Printed Circuit
Boards and integrated circuit
substrates;
(III) is relocating a manufacturing
facility of printed circuit boards
currently located in an area owned by,
controlled by, or subject to the
jurisdiction or direction of a foreign
entity of concern; or
(IV) includes a workforce training
program that is--
(aa) a historically Black
college or university;
(bb) a Hispanic-serving
institution (as such term is
defined in section 502(a) of
the Higher Education Act of
1965 (20 U.S.C. 1101a(a)));
(cc) a Tribal College or
University (as such term is
defined in section 316(b) of
the Higher Education Act of
1965 (20 U.S.C. 1059c(b)));
(dd) a minority-serving
institution;
(ee) a rural-serving
institution of higher education
(as such term is defined in
section 861(b) of the Higher
Education Act of 1965 (20
U.S.C. 1161q(b))); or
(ff) a workforce training
organization that offers
industry-recognized, stackable,
and portable credentialing
programs.
(ii) Definitions.--In this subparagraph:
(I) Stackable.--The term
``stackable'' means a credential that
is part of a set of sequenced, related
credentials that demonstrating the
increasing qualifications of the
individual acquiring the credentials
for advancement along a specific career
path or to a more senior position in
the same or related career path.