IPC Welcomes the “Big Beautiful Bill”

IPC Global Advocacy Report – LinkedIn Edition – May 27, 2025  

This week, IPC is watching some encouraging signs and some cautionary signs on the global electronics landscape from Washington to New Delhi, Tokyo, and Brussels. Scroll down for your five-minute IPC Global Advocacy Report and let us know how these developments are affecting your business.

IPC Applauds Pro-Electronics Pieces of “Big Beautiful Bill”

The U.S. House on Thursday passed a wide-ranging bill to deliver on President Trump’s domestic agenda, including several provisions endorsed by IPC.

In a letter sent to House leaders on the eve of the vote, IPC’s John W Mitchell praised the tax-related provisions that would preserve the 21% corporate tax rate, restore 100% bonus depreciation, reinstate immediate R&D expensing, and expand the Section 199A deduction for pass-throughs. IPC continues to urge lawmakers to go further by adopting a tax credit for U.S.-made PCBs (as proposed in H.R. 3249) and the extension of Sections 48D and 45X to cover electronics components and assemblies.

Mitchell also welcomed provisions that would:

• Raise the Section 179 Expensing Cap from $1 million to $2.5 million, giving small manufacturers greater flexibility to deduct equipment investments in the year of purchase.

• Create a new 100% deduction for new or improved factory construction, supporting long-term facility expansion and reshoring of advanced manufacturing operations; and

• Establish a Workforce Pell Grant Program for high-quality, credentialed training, which could become a major boon to the talent pipeline in electronics manufacturing.

The focus of congressional action now turns to the Senate, which will act on a companion measure in the coming weeks. Significant differences exist between House and Senate Republicans on many provisions.

Stay tuned for IPC advocacy opportunities on this front. IPC Contact: Richard Cappetto    

IPC-Backed PCB Legislation Reintroduced in Congress

A bill aimed at increasing the manufacture and purchase of domestically produced PCBs is expected to be introduced soon in the U.S House.

The Protecting Circuit Boards and Substrates Act (PCBS Act) would establish a 25% tax credit for sourcing U.S.-made printed circuit boards (PCBs) and authorize $3 billion in federal investments for domestic PCB and IC substrate production. Rep. Blake Moore (R-UT), who championed a similar measure in the last session of Congress, will offer the bill along with Rep. Raja Krishnamoorthi (D-IL), a new lead cosponsor.

IPC believes a resilient electronics supply chain begins with robust domestic manufacturing of PCBs and substrates – which multiple federal assessments have identified as a national weakness. Stay tuned for IPC advocacy opportunities on this front, too. IPC Contact: Richard Cappetto    

 India Advances Electronics and Semiconductor Strategies

India continues to work toward strengthening its position in the global electronics and semiconductor landscape. As Business Standard reports, the government recently approved key proposals under its Semiconductor Mission in Uttar Pradesh, including projects involving HCL and Foxconn, aimed at boosting domestic chip capacity.

In parallel, officials confirmed that the first group of eligible applicants under the Production-Linked Incentive (PLI) scheme for electronic components may be announced within the next month.

India aims to capture 5% of the global semiconductor market by 2030, a target supported by new investments, government incentives, and a long-term push to move up the electronics value chain. IPC Chief Economist Shawn DuBravac, PhD, CFA highlighted India’s momentum in a recent LinkedIn post, noting how India has evolved from a hub for call centers to an increasingly competitive player in advanced electronics. IPC Contact: Gaurab Majumdar

New EU RoHS Project Launches with Six Exemptions Under Review

The Oeko-Institut, a nonprofit Germany-based research institute, has launched “RoHS Pack 28,” a new project on behalf of the European Commission to evaluate five renewal requests and one exemption revocation under the Restriction of Hazardous Substances (RoHS) Directive. The exemptions under review include uses of mercury in lamps, sensors, and medical devices, as well as lead in explosive initiators and ultrasonic transducers.

Companies affected by these exemptions are strongly encouraged to engage early, as RoHS decisions can significantly impact product design, market access, and supply chain continuity. IPC continues to monitor RoHS developments and engage with regulators to ensure a balanced approach that supports innovation and environmental responsibility. IPC Contact: Diana Radovan PhD ELS

Tokyo Roundtable Spotlights Trade and Tech Innovation

Last week, IPC President and CEO John W Mitchell convened industry leaders in Tokyo for a high-level roundtable exploring the intersection of global trade and technology innovation. The event featured insights from IPC’s Matt Kelly and Chris Mitchell, alongside former LDP Secretary General Akira Amari. Discussions focused on strengthening supply chain resilience, advancing AI and semiconductor collaboration, and elevating the region’s role in shaping global electronics policy. The Tokyo roundtable is the second in IPC’s quarterly executive series in Japan, aimed at deepening regional engagement and surfacing strategic industry priorities. IPC Contact: Yusaku Kono

Learn More and Get Involved in IPC Industry Advocacy

All over the world, IPC seeks opportunities to educate, inform and influence government policymakers on decisions that affect our industry. But our success depends on active support and participation from attentive leaders like you!

Next Week: EMS Advocacy Day & Roundtable – Washington, DC, June 3-4

If you’re an EMS executive and concerned about government decisions that affect your company, join your peers in Washington, DC, for a quick day of learning and action on the industry's most pressing challenges. Attendees will hear from congressional staff and agency officials, share their perspectives on key issues, and help shape IPC’s advocacy strategy moving forward. Learn more and register today 

Otherwise, to learn more and get involved:

• Find us and follow us on LinkedIn

• Reach out to speak with us. We’re listening.

• Peruse our global Advocacy pages on IPC.org and follow the links to information about our work in North America, Europe, and Asia.

• Subscribe to receive the IPC Global Advocacy Report by email.  

• Then get ready to make your voice heard!

Have a great week, and please contact us if you have any questions or insights to share.