US Senate Introduces Bipartisan Bill with 25% Tax

Bipartisan Bill Targets 25% Tax Credit for American-Made PCBs

The Printed Circuit Board Association of America (PCBAA) announced on May 25, 2026, the introduction of S.4569, the Protecting Circuit Boards and Substrates Act, by Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV). The legislation aims to incentivize domestic manufacturing of printed circuit boards through a combination of tax credits and grant funding.

The bill offers a 25% tax credit for the purchase or acquisition of American-made PCBs — a significant incentive that could shift procurement decisions for defense contractors, medical device companies, and other sectors where supply chain security matters.

The Problem: From 30% to 4% Market Share

Over the past three decades, the United States’ share of global PCB production has collapsed from 30% to just 4%. This dramatic decline resulted from aggressive subsidization of Asian manufacturing and the commoditization-driven offshoring wave that moved production to China, Taiwan, Japan, and South Korea.

The consequences extend beyond economics into national security:

• Defense dependency: The Department of Defense relies on PCBs in every weapons system, satellite, and communication platform — yet the domestic supply base has shrunk to fewer than 150 manufacturers
• Supply chain vulnerability: Long transoceanic supply chains proved fragile during COVID-19, with lead times extending from weeks to months
• Technology erosion: As manufacturing left, so did the process engineering expertise needed for advanced boards (HDI, RF, high-layer-count)

What the Legislation Includes

The Senate bill (S.4569) is a companion to the House version (H.R. 3597), which includes:

1. 25% tax credit for purchasing American-manufactured PCBs
2. $3 billion grant program to support PCB manufacturers directly — for equipment upgrades, capacity expansion, and workforce development
3. Focus on advanced PCBs: Substrates, HDI, and technology-intensive boards that are most critical for defense and advanced electronics

PCBAA Executive Director David Schild emphasized the strategic imperative: “Every semiconductor needs a PCB to function. The challenge is that PCB production and know-how have been offshored to heavily subsidized industries in Asia. This leaves American companies with the impossible task of competing with countries.”

Industry Context: Following the Semiconductor Playbook

The bill follows the successful model of the CHIPS and Science Act (2022), which has already attracted over $200 billion in semiconductor fabrication investments to the United States. The logic is straightforward: if chips need boards to function, reshoring chip manufacturing without reshoring PCB production creates a new bottleneck.

Current US PCB manufacturing capacity is concentrated in:

• Quick-turn prototyping (2–10 day delivery)
• Military-spec boards (ITAR-controlled)
• Medical devices (FDA-regulated supply chains)
• Aerospace (AS9100 certified facilities)

High-volume production — the bread and butter of the industry — remains overwhelmingly offshore. The proposed grants could fund the capital equipment (laser drills, plating lines, AOI systems) needed to make domestic high-volume production economically viable.

What This Means for PCB Buyers

For engineers and procurement teams, the 25% tax credit changes the cost calculus:

• A $10,000 production order from a US manufacturer effectively costs $7,500 after the credit
• For defense primes already required to use domestic sources, the credit improves margins
• Medical device companies facing supply chain audits gain a financial incentive to near-shore
• High-reliability applications (aerospace, automotive ADAS) where quality concerns already favor domestic production become even more cost-competitive

The legislation does not mandate domestic sourcing — it incentivizes it. Companies remain free to source globally, but the tax benefit makes American boards more price-competitive against Asian imports that carry their own tariff costs.

AtlasPCB’s Perspective

At AtlasPCB, we serve international customers who require advanced PCB capabilities — HDI, controlled impedance, RF materials, and complex multilayer designs. The reshoring movement creates opportunities across the entire supply chain:

• Increased demand for manufacturing engineering expertise
• Growing need for specialty materials and advanced processes
• Opportunities for PCB fabricators with high-technology capabilities to support reshored production

Whether your production runs domestically or internationally, the engineering requirements remain the same. Our team specializes in the complex PCB technologies — HDI, RF, flex, and heavy copper — that define the high-value segment of this market.

Source: PCB Directory / PCBAA, May 25, 2026. Bill reference: S.4569 (Senate), H.R. 3597 (House).

Planning a PCB project that requires advanced manufacturing? Get a quote from AtlasPCB — we deliver HDI, RF, and multilayer boards with engineering review included.

Image: Joshua Sukoff via Unsplash