Summary#
This bill creates tax and grant incentives to increase domestic production and research of printed circuit boards and integrated circuit substrates. It adds a tax credit equal to 25% of the cost of buying printed circuit boards and integrated circuit substrates that are fabricated in the United States. It also directs the Secretary of Commerce to set up a financial assistance program to give awards to companies or consortia to build, expand, or modernize facilities, and to support related research and workforce training. The program limits most awards to $300 million per project unless higher funding is recommended for national security reasons. Awards must meet eligibility tests, may include clawbacks for delays or prohibited technology sharing, and exclude foreign entities of concern. The bill authorizes $3,000,000,000 for the program for fiscal year 2026, available through 2065. The law requires coordination with other federal agencies and regular reviews by the Government Accountability Office.
What it means for you#
- Businesses that buy printed circuit boards or integrated circuit substrates fabricated domestically may claim a tax credit equal to 25% of the cost for taxable years after December 31, 2025.
- Manufacturers, research groups, and consortia can apply to the Commerce Department for financial assistance to build or upgrade facilities or fund R&D and training.
- Small businesses get some exceptions to application requirements and may receive preference. Priority is also given to minority-, women-, and veteran-owned businesses and to projects that expand domestic production or move production away from foreign entities of concern.
- Recipients must meet project milestones. Awards can be reduced or recovered if projects are delayed or if recipients share certain technology with foreign entities of concern.
- Individuals without a business that buys or makes circuit boards are unlikely to be directly affected.
Expenses#
- The bill authorizes $3,000,000,000 for fiscal year 2026 to carry out the financial assistance program, with those funds available through fiscal year 2065.
- The tax change provides a refundable business credit equal to 25% of the cost of qualifying purchases; the credit applies to amounts paid or incurred after December 31, 2025.
- No publicly available information on the total projected federal cost or budgetary estimates beyond the authorization amount provided in the bill text.
Proponents' View#
The bill’s text states goals to encourage domestic manufacturing and research of printed circuit boards and substrates, strengthen economic competitiveness, support national security needs, and build workforce training tied to the industry. It creates tax incentives and a grant program, includes preferences for small and historically underserved businesses, and sets clawbacks to protect federal investments.
Opponents' View#
No publicly available information.