[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Extensions of Remarks]
[Page 4647]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   THE PRINTED CIRCUIT INVESTMENT ACT

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Tuesday, March 16, 1999

  Mr. CRANE. Mr. Speaker, today I am joined by my Ways and Means 
Committee colleague, Mr. Matsui, in introducing the Printed Circuit 
Investment Act.
  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 5 years under 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 cellular phones.
  The interconnecting industry, as with so much of the electronics 
industry, has changed dramatically in just the last decade. While 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. To keep pace 
with these advances, companies in the industry spend billions of 
dollars each year on capital costs. 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. Competitors to American firms in 
Asia, however, enjoy much more favorably 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 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 and Mr. Matsui in providing this relief by cosponsoring the 
bill.

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