[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7677 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7677
To provide incentives for the domestic production of printed circuit
boards, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 2022
Ms. Eshoo (for herself and Mr. Moore of Utah) 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 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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