The "Protecting Circuit Boards and Substrates Act" is designed to significantly enhance the domestic production capabilities for printed circuit boards and integrated circuit substrates, which are vital components across numerous electronic sectors. The legislation introduces a new tax incentive and establishes a federal financial assistance program, both aimed at strengthening the United States' supply chain resilience and national security in this critical technology area.

Specifically, Section 2 of the bill amends the Internal Revenue Code to introduce a new 25 percent tax credit. This credit applies to the cost incurred by taxpayers for purchasing or acquiring printed circuit boards and integrated circuit substrates that are fabricated within the United States, with the provision becoming effective for amounts paid or incurred after December 31, 2025.

Section 3 establishes a comprehensive program, to be administered by the Secretary of Commerce, offering Federal financial assistance to eligible entities. This assistance is intended to incentivize investment in facilities and equipment for manufacturing or research and development of these components within the U.S. Eligibility requires demonstrating project viability, a plan for financial sustainability, and commitments to worker and community investment, though small businesses are granted some exemptions from these specific requirements.

The program prioritizes applications from small, minority, women, or veteran-owned businesses, as well as those expanding U.S. production capacity or relocating manufacturing from foreign entities of concern. It also favors projects that include workforce training programs in collaboration with specific educational institutions. Financial awards are generally capped at $300 million, but larger investments may be approved if deemed essential for national security or economic competitiveness, following consultation with defense and intelligence officials and notification to Congress.

To protect federal investments, the bill includes robust clawback provisions, allowing for the recovery of funds if projects face significant delays or if recipients engage in joint research or technology licensing with foreign entities of concern on national security-sensitive technologies. The Secretary of Commerce is mandated to coordinate with various federal agencies in implementing the program, and the Comptroller General will conduct biennial reviews to assess its effectiveness. The bill authorizes an appropriation of $3 billion for fiscal year 2026 to fund this initiative, available through fiscal year 2065.