Supporting American Printed Circuit Boards Act of 2022
Bill: H.R.7677 | Sponsor: Rep. Eshoo, Anna G. (D-CA)
Policy area: Commerce

Summary:
Supporting American Printed Circuit Boards Act of 2022
This bill establishes a business tax credit for the purchase of printed circuit boards manufactured in the United States. It also provides financial incentives for entities that invest in facilities and equipment in the United States for manufacturing (or research and development of) printed circuit boards.

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 ``Supporting American Printed Circuit 
Boards Act of 2022''.

SEC. 2. TAX CREDIT FOR THE PURCHASE OR ACQUISITION OF PRINTED CIRCUIT 
              BOARDS 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 45L the following new section:

``SEC. 45M. CREDIT FOR THE PURCHASE OR ACQUISITION OF PRINTED CIRCUIT 
              BOARDS MANUFACTURED 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 manufactured 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 
        Supporting American Printed Circuit Boards Act of 2022.
            ``(2) Manufactured.--The term `manufactured' means all 
        substantial actions involved in the printing of a printed 
        circuit board from raw materials to the integration of the 
        completed board into an end item or component of an end item.
    ``(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) Conforming Amendment.--
            (1) In general.--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 45L the following 
        new item:

``Sec. 45M. Credit for the purchase or acquisition of printed circuit 
                            boards manufactured in the United 
                            States.''.
            (2) General business credit.--Section 38(b) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) in paragraph (32), by striking ``plus'';
                    (B) in paragraph (33), by striking the period at 
                the end and inserting ``, plus''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(34) the credit for the purchase or acquisition of 
        printed circuit boards manufactured in the United States 
        determined under section 45M.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2021.

SEC. 3. INCENTIVES FOR PRINTED CIRCUIT BOARD MANUFACTURING AND RESEARCH 
              AND DEVELOPMENT.

    (a) Definitions.--In this section:
            (1) Circuit board.--The term ``circuit board'' means a 
        piece of insulating material on which electrical components are 
        mounted and interconnected by etched copper foil so patterned 
        as to form a circuit.
            (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.
            (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.
            (4) Economically disadvantaged individual.--The term 
        ``economically disadvantaged individual'' means an individual 
        described in section 8(a)(6)(A) of the Small Business Act (15 
        U.S.C. 637(a)(6)(A)).
            (5) 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).
            (6) 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).
            (7) 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).
            (8) Integrated circuit substrate.--The term ``integrated 
        circuit substrate'' means the supporting material upon or 
        within which an integrated circuit is fabricated or to which an 
        integrated circuit is attached.
            (9) 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).
            (10) 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)).
            (11) 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))).
            (12) Person.--The term ``person'' means an individual or 
        entity.
            (13) Printed circuit board.--The term ``printed circuit 
        board'' means a circuit board on which a pattern of copper foil 
        connecting the components has been etched or printed, including 
        boards with printed circuits on both sides and boards with 
        printed circuits on one side only, for the mounting of 
        components on which most connections are made by printed 
        circuitry.
            (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.
            (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.--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 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 secures commitments from an institution of 
                        higher education that is--
                                    (I) a historically Black college or 
                                university;
                                    (II) 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)));
                                    (III) 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)));
                                    (IV) a minority-serving 
                                institution; or
                                    (V) 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))).
                    (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 $150,000,000 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 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 $150,000,000, 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 2022, to remain available 
through fiscal year 2023, to carry out this section.
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