Protecting Circuit Boards and Substrates Act

This bill provides incentives for the domestic production of printed circuit boards. It creates a tax credit for purchasing U.S.-fabricated printed circuit boards and establishes a financial assistance program to support manufacturing and research and development of printed circuit boards and integrated circuit substrates.

Sec. 2, Tax credit for U.S.-made printed circuit boards: This section adds a new tax credit (section 45AA) to the Internal Revenue Code. For taxable years, a taxpayer can claim a credit equal to 25 percent of the cost paid for purchasing or acquiring printed circuit boards that are fabricated in the United States. The credit is part of the general business credit. The amendments apply to amounts paid or incurred after December 31, 2022.

Sec. 3, Incentives for printed circuit board manufacturing and research and development: This section defines key terms, including 'printed circuit board' and 'integrated circuit substrate'. The Secretary of Commerce must establish a program to provide federal financial assistance to eligible entities (private entities or consortia) for constructing, expanding, or modernizing facilities in the U.S. for manufacturing or R&D of printed circuit boards and integrated circuit substrates. Eligible entities must submit an application demonstrating a documented interest in a covered incentive, a sustainable plan, worker and community investment commitments, and secured workforce training commitments (small businesses are exempt from some requirements). The Secretary must consider national security needs and give preference to small, minority-owned, women-owned, or veteran-owned businesses, projects expanding integrated circuit substrate production, relocating facilities from foreign entities of concern, or including workforce training programs at certain institutions. Awards cannot exceed $300 million per project unless the President notifies Congress that a larger award is necessary for national security. Funds can only be used for covered incentives and related operating expenses. The Secretary must set target dates for project completion and can claw back funds for delays or if the recipient knowingly engages in joint research or technology licensing with a foreign entity of concern. The Secretary must coordinate with multiple federal agencies. The Comptroller General must conduct biennial reviews of the program for 10 years. $3 billion is authorized to be appropriated for fiscal year 2024, available through fiscal year 2025.