New 25% tax credit targets purchases of US-made circuit boards

What does this do?

S 4569 creates a federal tax credit equal to 25 percent of what a business spends on printed circuit boards manufactured inside the United States. The credit applies to buyers of the boards, not only their makers, and covers boards that are physically produced from raw materials on US soil. Purchases must be made after December 31, 2025 to qualify.

Who does it affect?

The credit is available to any business that buys American-made circuit boards, including electronics manufacturers, defense contractors, automakers, and technology companies. Domestic circuit board fabricators are also affected, because the incentive gives their customers a financial reason to choose US suppliers.

Why does it matter?

The tax incentive shifts the cost calculation for businesses that currently source circuit boards from foreign suppliers, particularly in countries like China, which dominates global production. Companies that switch to domestic suppliers reduce their federal tax liability by 25 cents for every dollar spent on qualifying boards.

What does it cost, and who pays?

• 25% credit per dollar spent
• Applies to buyers, not only makers
• Effective after Dec. 31, 2025