[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[Extensions of Remarks]
[Pages E2199-E2200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               THE PRINTED CIRCUIT INVESTMENT ACT OF 1997

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Wednesday, November 5, 1997

  Mr. CRANE. Mr. Speaker, I rise today to introduce the Printed Circuit 
Investment Act of 1997 and to encourage my colleagues to support this 
legislation.
  This simple and straightforward bill will allow manufacturers of 
printed wiring boards and printed wiring assemblies, known as the 
interconnecting industry, to depreciate their production equipment in 3 
years rather than the 5 years in current law. Printed wiring boards are 
those ubiquitous little green boards loaded with tiny wires and 
microchips which are the nerve centers of electronic items from 
television sets to computers to mobile phones.
  The interconnecting industry, as with so much of the electronics 
industry, has changed dramatically in just the last decade. While the 
industry was once dominated by large companies, the industry now 
consists overwhelmingly of small firms, with many of them located in my 
home State of Illinois. The rapid pace of technological advancement 
today makes interconnecting manufacturing equipment obsolete in 18 to 
36 months--tomorrow's advances will further reduce that time to 
obsolescence. This makes the interconnecting industry very capital 
intensive. In fact, capital expenditures totaled $2.1 billion in 1996 
and are expected to be $2.3 billion this year. Considering that this is 
an industry dominated by small U.S. firms competing in ever more 
competitive world markets, clearly we need a Tax Code that more clearly 
reflects reality.
  The depreciation rules found in the Tax Code, of course, have not 
kept pace with the realities of this dynamic market. The industry 
currently relies on tax law passed in the 1980's, which was based on 
1970's era electronics technology. U.S. competitors in Asia, however, 
enjoy much more favorable tax treatment as well as direct Government 
subsidies. We must remove the U.S. Tax Code as an obstacle to growth in 
this industry. The Printed Circuit Investment Act will take a step in 
that direction. Quite frankly though, I view this as a very modest step 
and would like to provide much more generous tax relief to these 
businesses, considering the fierce competition from foreign countries.
  Mr. Speaker, the Printed Circuit Investment Act of 1997 will provide 
modest tax relief to the interconnecting industry and the 250,000 
Americans whose jobs rely on the success of this industry. I urge my 
colleagues to join me in providing this relief by cosponsoring the 
bill.

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