119-hr3597

[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.
            (II) Portable.--The term 
 ``portable'' means a credential that is 
 generally recognized and accepted by a 
 wide variety of entities and in 
 multiple geographic locations as 
 verifying the qualifications of an 
 individual.
        (G) Foreign entities of concern exclusion.--
            (i) The Secretary may not approve an 
 application of a covered entity if the 
 Secretary determines that the covered entity is 
 a foreign entity of concern.
            (ii) None of the funds authorized to be 
 appropriated to carry out this subsection may 
 be provided to a foreign entity of concern.
        (H) Records production.--
            (i) In general.--The Secretary may request 
 from a covered entity that submits an 
 application under subparagraph
        (A) any records 
 and other information that the Secretary 
 determines necessary for the purposes of 
 ascertaining whether an award under the Program 
 will be used for the covered incentive for 
 which such award is sought, including records 
 or other information regarding the status of 
 such project.
            (ii) Funding restriction.--No covered 
 entity that fails to provide records or 
 information requested by the Secretary under 
 this subparagraph shall be eligible for Federal 
 financial assistance under the Program if such 
 records or information are reasonably available 
 to such covered entity.

    (3) Amount.--
        (A) In general.--The Secretary shall determine the 
 appropriate amount and funding type for each financial 
 assistance award made to a covered entity under the 
 Program.
        (B) Larger investment.--The amount awarded under 
 the Program with respect to any individual project may 
 not exceed $300,000,000 unless the Secretary, in 
 consultation with the Secretary of Defense and the 
 Director of National Intelligence, recommends to the 
 President, and the President notifies Congress, that a 
 larger award is necessary to--
            (i) significantly increase the supply of 
 reliable, domestically produced printed circuit 
 boards and integrated circuit substrates that 
 are relevant for the national security and 
 economic competitiveness of the United States; 
 and
            (ii) meet the needs of national security.

    (4) Use of funds.--
        (A) In general.--Except as provided by subparagraph
        (B) , a covered entity that receives a financial 
 assistance award under the Program may only use the 
 financial assistance award amounts--
            (i) for a covered incentive; and
            (ii) to pay reasonable costs related to the 
 operating expenses for such covered incentive, 
 including costs relating to the specialized 
 workforce, essential materials, and complex 
 equipment maintenance, as determined by the 
 Secretary.
        (B) Larger investments.--If the amount awarded 
 under the Program with respect to the project is more 
 than $300,000,000, the covered entity that received 
 such award may use such amounts only for the purposes 
 described in subparagraph
        (A) to the extent that such 
 use meets the national security needs or enhances the 
 economic competitiveness of the United States.

    (5) Clawback.--
        (A) Delay clawback.--
            (i) Target dates.--With respect to any 
 award made under the Program, the Secretary 
 shall--
            (I) determine target dates by which 
 the project with respect to which such 
 award was made shall commence and 
 complete; and
            (II) set such dates by the time of 
 the award.
            (ii) Progressive recovery for delays.--If a 
 project is not commenced and completed by the 
 dates determined under clause
            (i) for such 
 project, the Secretary shall progressively 
 recover from the recipient of the award for 
 such project up to the full amount of such 
 award.
            (iii) Waiver.--In the case of a project 
 that is not commenced or completed by the dates 
 determined under clause
            (i) for such project, 
 the Secretary may waive elements of the 
 clawback provisions incorporated in the award 
 made under the Program for such project only 
 if, prior to granting such waiver, the 
 Secretary--
            (I) makes a formal determination 
 that circumstances beyond the ability 
 of the covered entity to foresee or 
 control are responsible for delays; and
            (II) submits a notice to Congress.
        (B) Technology clawback.--The Secretary may recover 
 the full amount of any award made under the Program 
 from the recipient of the award if, during the period 
 determined under subparagraph
        (A)
            (i) for the project 
 with respect to which such award was made, the 
 recipient knowingly engages in any joint research or 
 technology licensing effort with a foreign entity of 
 concern that relates to a technology or product that 
 raises national security concerns, as determined by the 
 Secretary.
            (C) Notification to congress.--
            (i) In general.--The Secretary shall notify 
 Congress of--
            (I) the clawback provisions 
 attending each award described in 
 subparagraph
        (A)
            (i) ; and
            (II) each waiver provided under 
 subparagraph
        (A)
            (iii) not later than 15 
 days after the date on which the 
 Secretary provides such waiver.
            (ii) Waiver notice contents.--The notice 
 required under clause
            (i) 
            (II) shall include--
            (I) the elements of the clawback 
 provisions that were waived under 
 subparagraph
        (A)
            (iii) ;
            (II) an explanation of why such 
 waiver was provided;
            (III) the duration of the delay 
 with respect to which such waiver was 
 granted; and
            (IV) the name of the covered entity 
 that was granted such waiver.
            (c) Coordination Required.--In carrying out the Program, the 
Secretary shall coordinate with--

    (1) the Secretary of State;

    (2) the Secretary of Defense;

    (3) the Secretary of Energy;

    (4) the Director of National Intelligence;

    (5) the Director of the Minority Business Development 
 Agency of the Department of Commerce;

    (6) the Administrator of the Small Business Administration;

    (7) the Director of the National Institute of Standards and 
 Technology;

    (8) the Director of the Cybersecurity and Infrastructure 
 Agency; and

    (9) the Director of the Office of Foreign Assets Control of 
 the Department of the Treasury.
            (d) Gao Reviews.--The Comptroller General of the United States 
shall--

    (1) not later than 2 years after the date of disbursement 
 of the first award under the Program, and biennially thereafter 
 for 10 years, conduct a review of the Program, which shall 
 include--
        (A) a determination of the number of awards 
 provided under the Program during the two-year period 
 immediately preceding the review;
        (B) an evaluation of how--
            (i) such program is being carried out, 
 including how recipients of awards under the 
 Program are being selected; and
            (ii) other Federal programs are leveraged 
 for manufacturing, research, and training to 
 complement the awards made under the Program; 
 and
            (C) a description of the outcomes of projects 
 supported by awards made under the Program, including a 
 description of--
            (i) facilities described in subsection

    (b)

    (1) that were constructed, expanded, or 
 modernized as a result of such awards;
            (ii) research and development carried out 
 with such awards;
            (iii) workforce training programs carried 
 out with such awards, including efforts to hire 
 economically disadvantaged individuals; and
            (iv) the effects of such projects on the 
 United States share of global printed circuit 
 board production; and

    (2) notify Congress of the results of each review conducted 
 under paragraph

    (1) .

    (e) Authorization of Appropriations.--There is authorized to be 
appropriated $3,000,000,000 for fiscal year 2026, to remain available 
through fiscal year 2065, to carry out this section.
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