Protecting Circuit Boards and Substrates Act

I 118TH CONGRESS 1ST SESSION H. R. 3249 To provide incentives for the domestic production of printed circuit boards, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 11, 2023 Mr. MOORE of Utah (for himself and Ms. ESHOO) 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting Circuit 4 Boards and Substrates Act’’. 5 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3249 IH SEC. 2. TAX CREDIT FOR THE PURCHASE OR ACQUISITION 1 OF PRINTED CIRCUIT BOARDS MANUFAC- 2 TURED IN THE UNITED STATES. 3 (a) IN GENERAL.—Subpart D of part IV of sub- 4 chapter A of chapter 1 of the Internal Revenue Code of 5 1986 is amended by inserting after section 45Z the fol- 6 lowing new section: 7 ‘‘SEC. 45AA. CREDIT FOR THE PURCHASE OR ACQUISITION 8 OF PRINTED CIRCUIT BOARDS FABRICATED 9 IN THE UNITED STATES. 10 ‘‘(a) IN GENERAL.—For the purposes of section 38, 11 the credit determined under this section for the taxable 12 year is an amount equal to 25 percent of the cost paid 13 or incurred by the taxpayer for the purchase or acquisition 14 of printed circuit boards fabricated in the United States 15 for the taxable year. 16 ‘‘(b) DEFINITIONS.—For the purposes of this sec- 17 tion— 18 ‘‘(1) PRINTED CIRCUIT BOARD.—The term 19 ‘printed circuit board’ has the meaning given such 20 term in section 3(a) of the Protecting Circuit Boards 21 and Substrates Act. 22 ‘‘(2) FABRICATED.—The term ‘fabricated’ 23 means the use of raw materials to manufacture a 24 connected composite structure featuring electrically 25 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3249 IH conductive and non-conductive elements by subtrac- 1 tive, additive, or other technique. 2 ‘‘(c) REGULATIONS AND GUIDANCE.—The Secretary 3 shall, in consultation with the Secretary of Commerce, 4 promulgate such regulations and guidance as may be nec- 5 essary or appropriate to carry out this section.’’. 6 (b) CLERICAL AMENDMENT.—The table of sections 7 for subpart D of part IV of subchapter A of chapter 1 8 of such Code is amended by inserting after the item relat- 9 ing to section 45Z the following new item: 10 ‘‘Sec. 45AA. Credit for the purchase or acquisition of printed circuit boards fabricated in the United States.’’. (c) CREDIT MADE PART OF GENERAL BUSINESS 11 CREDIT.—Section 38(b) of the Internal Revenue Code of 12 1986 is amended— 13 (1) in paragraph (37), by striking ‘‘plus’’, 14 (2) in paragraph (38), by striking the period at 15 the end and inserting ‘‘, plus’’, and 16 (3) by adding at the end the following new 17 paragraph: 18 ‘‘(39) the credit for the purchase or acquisition 19 of printed circuit boards fabricated in the United 20 States determined under section 45AA.’’. 21 (d) EFFECTIVE DATE.—The amendments made by 22 this section shall apply to amounts paid or incurred after 23 December 31, 2022. 24 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3249 IH SEC. 3. INCENTIVES FOR PRINTED CIRCUIT BOARD MANU- 1 FACTURING AND RESEARCH AND DEVELOP- 2 MENT. 3 (a) DEFINITIONS.—In this section: 4 (1) ACTIVE COMPONENT.—The term ‘‘active 5 component’’ means, with respect to a printed circuit 6 board, an electronic component within an electronic 7 circuit that relies on an external power source to 8 control or modify electrical signals. 9 (2) COVERED ENTITY.—The term ‘‘covered en- 10 tity’’ means a private entity, a consortium of private 11 entities, or a consortium of public and private enti- 12 ties with the ability to substantially finance, con- 13 struct, expand, or modernize a facility relating to 14 manufacturing or research and development of print- 15 ed circuit boards and integrated circuit substrates. 16 (3) COVERED INCENTIVE.—The term ‘‘covered 17 incentive’’ means— 18 (A) an incentive used for the purposes of 19 constructing, expanding, or modernizing a facil- 20 ity described in paragraph (2) that will be lo- 21 cated in the United States; and 22 (B) a workforce-related incentive (includ- 23 ing an agreement to provide grants for work- 24 force training or vocational education), any con- 25 cession with respect to real property, funding 26 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3249 IH for research and development with respect to 1 printed circuit boards, and any other incentive 2 determined by the Secretary, in consultation 3 with the Secretary of State, to be appropriate 4 and related to encouraging investment in facili- 5 ties and equipment in the United States for 6 manufacturing or research and development of 7 printed circuit boards. 8 (4) ECONOMICALLY DISADVANTAGED INDI- 9 VIDUAL.—The term ‘‘economically disadvantaged in- 10 dividual’’ means an individual described in section 11 8(a)(6)(A) of the Small Business Act (15 U.S.C. 12 637(a)(6)(A)). 13 (5) FOREIGN ENTITY; FOREIGN ENTITY OF 14 CONCERN.—The terms ‘‘foreign entity’’ and ‘‘foreign 15 entity of concern’’ have the meanings given such 16 terms in section 9901 of the William M. (Mac) 17 Thornberry National Defense Authorization Act for 18 Fiscal Year 2021 (Public Law 116–283; 15 U.S.C. 19 4651). 20 (6) HISTORICALLY BLACK COLLEGE OR UNI- 21 VERSITY.—The term ‘‘historically Black college or 22 university’’ has the meaning given the term ‘‘part B 23 institution’’ in section 322 of the Higher Education 24 Act of 1965 (20 U.S.C. 1061). 25 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3249 IH (7) INSTITUTION OF HIGHER EDUCATION.—The 1 term ‘‘institution of higher education’’ has the 2 meaning given such term in section 101 of the High- 3 er Education Act of 1965 (20 U.S.C. 1001). 4 (8) INTEGRATED CIRCUIT SUBSTRATE.—The 5 term ‘‘integrated circuit substrate’’ means a thin 6 composite structure of layered electrically conductive 7 materials and organic electrically non-conductive ma- 8 terials that electrically connects integrated circuits 9 to an underlying structure, including a printed cir- 10 cuit board. 11 (9) INTELLIGENCE COMMUNITY.—The term 12 ‘‘intelligence community’’ has the meaning given 13 that term in section 3 of the National Security Act 14 of 1947 (50 U.S.C. 3003). 15 (10) MINORITY-OWNED BUSINESS AND WOMEN- 16 OWNED BUSINESS.—The terms ‘‘minority-owned 17 business’’ and ‘‘women-owned business’’ have the 18 meanings given such terms in section 704B(h) of the 19 Equal Credit Opportunity Act (15 U.S.C. 1691c– 20 2(h)). 21 (11) MINORITY-SERVING INSTITUTION.—The 22 term ‘‘minority-serving institution’’ means any of 23 the following: 24 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3249 IH (A) An Alaska Native-serving institution 1 (as that term is defined in section 317(b) of the 2 Higher Education Act of 1965 (20 U.S.C. 3 1059d(b))). 4 (B) A Native Hawaiian-serving institution 5 (as that term is defined in section 317(b) of 6 such Act (20 U.S.C. 1059d(b))). 7 (C) A Predominantly Black institution (as 8 that term is defined in section 371(c) of such 9 Act (20 U.S.C. 1067q(c))). 10 (D) An Asian American and Native Amer- 11 ican Pacific Islander-serving institution (as that 12 term is defined in section 320(b) of such Act 13 (20 U.S.C. 1059g(b))). 14 (E) A Native American-serving, nontribal 15 institution (as that term is defined in section 16 319(b) of such Act (20 U.S.C. 1059f(b))). 17 (12) PASSIVE COMPONENT.—The term ‘‘passive 18 component’’ means, with respect to a printed circuit 19 board, an electronic component within an electronic 20 circuit that functions using the existing electronic 21 current within the electronic circuit to control or 22 modify electrical signals. 23 (13) PERSON.—The term ‘‘person’’ means an 24 individual or entity. 25 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3249 IH (14) PRINTED CIRCUIT BOARD.—The term 1 ‘‘printed circuit board’’ means a composite structure 2 of layered electrically conductive and non-conductive 3 materials that provides interconnections with other 4 micro-electronics or electronics systems or sub- 5 systems and electrical connections between active 6 and passive components, and may include compo- 7 nents embedded in the composite structure. 8 (15) PROGRAM.—The term ‘‘Program’’ means 9 the program established under subsection (b)(1). 10 (16) SECRETARY.—The term ‘‘Secretary’’ 11 means the Secretary of Commerce. 12 (17) SMALL BUSINESS.—The term ‘‘small busi- 13 ness’’ has the meaning given the term ‘‘small busi- 14 ness concern’’ under section 3(a) of the Small Busi- 15 ness Act (15 U.S.C. 632(a)), except that section 16 121.103 of title 13, Code of Federal Regulations (or 17 any successor regulation) shall not apply. 18 (18) STATE.—The term ‘‘State’’ means each 19 State of the United States, the District of Columbia, 20 each commonwealth, territory, or possession of the 21 United States, and each federally recognized Indian 22 Tribe. 23 (19) VETERAN-OWNED BUSINESS.—The term 24 ‘‘veteran-owned business’’ has the meaning given the 25 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3249 IH term ‘‘small business concern owned and controlled 1 by veterans’’ in section 3(q) of the Small Business 2 Act (15 U.S.C. 632(q)). 3 (b) FINANCIAL ASSISTANCE PROGRAM.— 4 (1) IN GENERAL.—The Secretary shall establish 5 a program that, in accordance with the requirements 6 of this section and subject to the availability of ap- 7 propriations for such purposes, provides Federal fi- 8 nancial assistance to covered entities to incentivize 9 investment in facilities and equipment in the United 10 States for manufacturing or research and develop- 11 ment of printed circuit boards and integrated circuit 12 substrates. 13 (2) PROCEDURE.— 14 (A) IN GENERAL.—A covered entity shall 15 submit to the Secretary an application that de- 16 scribes the project for which the covered entity 17 is seeking financial assistance under the Pro- 18 gram. 19 (B) ELIGIBILITY.—Except as provided in 20 subparagraph (C), in order for a covered entity 21 to qualify for financial assistance under the 22 Program, the covered entity shall demonstrate 23 to the Secretary, in the application submitted 24 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3249 IH by the covered entity under subparagraph (A), 1 that— 2 (i) the covered entity has a docu- 3 mented interest in carrying out a project 4 that is a covered incentive; and 5 (ii) with respect to the project de- 6 scribed in clause (i), the covered entity 7 has— 8 (I) a plan the Secretary deter- 9 mines to be executable to sustain the 10 covered incentive described in clause 11 (i) without additional Federal finan- 12 cial assistance under the Program for 13 facility support; 14 (II) made commitments to work- 15 er and community investment, includ- 16 ing through— 17 (aa) training and education 18 benefits provided by or paid for 19 by the covered entity; and 20 (bb) programs to expand 21 employment opportunity for eco- 22 nomically disadvantaged individ- 23 uals; and 24 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 3249 IH (III) secured commitments from 1 regional educational and training enti- 2 ties, postsecondary vocational institu- 3 tions (defined in section 102(c) of the 4 Higher Education Act of 1965 (20 5 U.S.C. 1002(c))), or institutions of 6 higher education to provide workforce 7 training, including programming for 8 training and job placement of eco- 9 nomically disadvantaged individuals. 10 (C) SMALL BUSINESS EXCEPTION.—The 11 requirements in subclauses (II) and (III) of 12 subparagraph (B)(ii) do not apply to small 13 businesses. 14 (D) DUE DILIGENCE.—With respect to the 15 review by the Secretary of an application sub- 16 mitted by a covered entity under subparagraph 17 (A), the Secretary may not approve the applica- 18 tion unless the Secretary— 19 (i) confirms that the covered entity 20 has satisfied the applicable eligibility cri- 21 teria under subparagraph (B); and 22 (ii) determines that the project to 23 which the application relates is in the in- 24 terest of the United States. 25 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 3249 IH (E) CONSIDERATIONS FOR REVIEW.— 1 (i) IN GENERAL.—Except as provided 2 in clause (ii), with respect to the review by 3 the Secretary of an application submitted 4 by a covered entity under subparagraph 5 (A), the Secretary shall consider whether 6 the covered entity has— 7 (I) previously received financial 8 assistance under the Program; and 9 (II) demonstrated that it is re- 10 sponsive to the national security needs 11 or requirements established by the in- 12 telligence community (or an agency 13 thereof), the National Nuclear Secu- 14 rity Administration, or the Depart- 15 ment of Defense. 16 (ii) SMALL BUSINESSES EXCLUDED.— 17 Clause (i)(I) does not apply with respect to 18 an application submitted by a small busi- 19 ness under subparagraph (A). 20 (F) PREFERENCES.— 21 (i) IN GENERAL.—The Secretary 22 shall, when practicable, give preference 23 with respect to the approval of an applica- 24 VerDate Sep 11 2014 21:07 May 24, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3249.IH H3249 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 3249 IH tion submi [Text truncated for display. 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