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CIVIC HERALD
HR 3597 · 119th Congress · HouseIn committee

Protecting Circuit Boards and Substrates Act

In plain language: Starting in 2026, businesses that purchase American-made printed circuit boards and microchip substrates can claim a 25 percent federal tax credit. The legislation also authorizes $3 billion in federal grants to help companies build, modernize, or expand domestic manufacturing plants and fund related job-training programs. To qualify for grants, companies must invest in local workforce training and agree to return the funds if they fail to meet project deadlines or partner with foreign adversaries on sensitive technology.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, issue tags, provisions, stakeholders, summary
People affected—not determinable from the text provided
Fiscal magnitude$3.0Bprovisional · pending reviewSec. 3(e) authorizes $3,000,000,000 in appropriations for fiscal year 2026 (available through fiscal year 2065) for the grant program. The revenue impact of the uncapped 25% tax credit in Sec. 2 is not determinable from the text.
Reach58provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Spending vs. restraint+28Public R&D+26Business taxation−28Trade & tariffs−35

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • Taxpayers purchasing U.S.-fabricated circuit boards and substratesMay claim a 25 percent tax credit under the general business credit for costs paid or incurred after December 31, 2025, to purchase or acquire printed circuit boards and integrated circuit substrates fabricated in the United States (Sec. 2).provisional
  • Domestic printed circuit board and substrate manufacturersEligible to receive federal financial assistance grants (generally up to $300 million per project) to build, expand, or modernize U.S. facilities and equipment for manufacturing and research (Sec. 3(b)(1), (3)).provisional
  • Small, minority-, women-, and veteran-owned manufacturing businessesReceive application preferences for financial assistance awards, and small businesses are exempt from certain workforce and community commitment mandates and restrictions on prior award recipients (Sec. 3(b)(2)(C), (E), (F)).provisional
  • HBCUs, minority-serving, and rural-serving higher education institutionsReceive preference in the grant selection process when included in workforce training partnerships with financial assistance applicants (Sec. 3(b)(2)(F)).provisional

Who it burdens

  • Financial assistance award recipientsMust meet workforce commitments, provide records, adhere to strict project start and completion deadlines, and face progressive or full clawback of grant funds for delays or for knowingly engaging in sensitive joint research or licensing with foreign entities of concern (Sec. 3(b)(2), (4), (5)).provisional
  • Department of CommerceRequired to establish and administer the financial assistance program, issue eligibility rules and target dates, enforce clawback provisions, and coordinate with multiple national security and economic agencies (Sec. 3(b), (c)).provisional
  • Government Accountability OfficeRequired to conduct biennial reviews of the grant program for 10 years and submit reports to Congress regarding program outcomes, global production share, and workforce results (Sec. 3(d)).provisional

Who opposes it

  • Foreign entities of concernExplicitly prohibited from applying for or receiving any federal financial assistance funds under the manufacturing incentive program (Sec. 3(b)(2)(G)).provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Establishes a 25 percent tax credit under the general business credit for costs paid or incurred after December 31, 2025, to purchase or acquire printed circuit boards and integrated circuit substrates manufactured in the United States.

    Sec. 2provisional

  2. Directs the Department of Commerce to establish a program providing federal financial assistance to private and public-private entities to build, expand, or modernize U.S. facilities and equipment for manufacturing and researching printed circuit boards and integrated circuit substrates.

    Sec. 3(b)(1)provisional

  3. Bars foreign entities of concern from applying for or receiving financial assistance under the program.

    Sec. 3(b)(2)(G)provisional

  4. Caps individual project awards at $300 million unless larger awards are recommended for national security and economic competitiveness and approved by the President with notice to Congress, and restricts funding to covered project incentives and reasonable operating expenses.

    Sec. 3(b)(3)-(4)provisional

  5. Requires the government to claw back award funds from recipients that fail to meet project start and completion deadlines or that knowingly engage in joint research or technology licensing with foreign entities of concern on sensitive technologies.

    Sec. 3(b)(5)provisional

  6. Authorizes $3 billion in appropriations for fiscal year 2026, available through fiscal year 2065, to fund the domestic printed circuit board and substrate incentive program.

    Sec. 3(e)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. May 23, 2025Referred 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.
  2. May 23, 2025Introduced in House
  3. May 23, 2025Introduced in House

The original text

Read it for yourself.

Read the original text →

Sources & provenance

Congress.govrefreshed 9 days ago

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