This morning, the House Ways and Means Committee advanced a major tax package that includes several provisions supported by IPC. These provisions — including restoring bonus depreciation, immediate R&D expensing, and strengthening the pass-through deduction — were identified by IPC members as key tools that would help them invest, grow, and compete more effectively. While the legislation still has a long way to go before becoming law, its passage out of committee marks a critical step forward.

Here’s what’s in the bill — and what it could mean for electronics manufacturers.

✅ Key Provisions Included in the Bill:

🏗️ Restores 100% Bonus Depreciation

• Allows businesses to immediately write off the full cost of qualifying equipment and machinery investments.
• Helps manufacturers reinvest in advanced tools, automation, and production lines — a top priority identified by IPC members.

🔬 Restores Immediate Expensing for Domestic R&D

• Reverses the current amortization of R&D expenses and allows companies to fully deduct domestic research costs in the year incurred.
• Encourages continued investment in innovation — especially for small and mid-sized firms.

🧾 Expands and Makes Permanent Section 199A Pass-Through Deduction

• Increases the deduction for qualified business income to 23% and simplifies the rules for small and medium-sized businesses.
• Supports the many IPC members organized as S corporations or partnerships.

❌ What’s Not in This Version of the Bill

While the bill includes several of IPC’s top priorities, it does not include new or expanded tax credits targeted specifically at electronics manufacturing. Proposals such as:

• A 25% tax credit for sourcing U.S.-made printed circuit boards (PCBs)
• Expansion of the Section 48D and 45X credits to include PCB and electronics assembly production

…were not incorporated into this version of the bill.

Given the current focus on limiting the bill’s impact on the national debt, lawmakers prioritized restoring and extending existing tax provisions rather than creating new ones. IPC understands the constraints facing Congress and appreciates the inclusion of meaningful pro-manufacturing policies in this package.

We will continue working with policymakers to make the case for targeted incentives that address the specific gaps in the U.S. electronics manufacturing ecosystem — especially as future legislative opportunities arise.

💬 IPC CEO John Mitchell: "A Strong Step Forward"

“These provisions are proven tools that help manufacturers reinvest, innovate, and grow,” said IPC President and CEO Dr. John W. Mitchell.
“We’re encouraged by this strong step forward and urge Congress to keep up the momentum. With continued leadership in the House and action by the Senate, a tax package that supports American innovation, investment, and industrial capacity can be enacted this year.”

🛠️ What Happens Next?

• The bill now moves to the full House of Representatives for consideration.
• The Senate must also act; discussions are ongoing.
• Congressional Republicans have targeted a July 4 date for final passage.
• IPC will continue pressing lawmakers to support provisions that benefit the entire electronics manufacturing supply chain.

Want to learn more or share your perspective? Contact us at friends@ipc.org or visit Advocating for the Global Electronics Industry | IPC International, Inc.

By Richard Cappetto, IPC Senior Director, North America Government Relations   

For businesses across the electronics industry, U.S. federal tax policy is not just about accounting. Nor are tariffs solely about suppliers and logistics. These policies are much bigger, affecting our decisions about investment, innovation, hiring, and global competition. 

This is especially true in 2025, as IPC members are navigating the uncertainties associated with the U.S. Government’s sweeping moves on tax reform and tariffs.

To gather insights into the risks and opportunities our members face in this environment, the IPC Industry Intelligence Unit conducted a member survey in March and April, receiving just over 100 responses from company leaders like you. Among the highlights:  

• 2017 tax cut impacts: 54.5% said the Tax Cuts and Jobs Act of 2017 (TCJA) had had a “neutral” overall impact on their companies; 36.6% percent said it was “very positive” or “somewhat positive;” and 8.9% said “somewhat” or “very” negative.   
• Tax cut benefits: 35.6% said the TCJA has made it possible to upgrade existing equipment and machinery; to invest in new U.S.-based manufacturing facilities (17.8%); adopt advanced manufacturing technologies such as automation, robotics, and AI; and build or upgrade R&D facilities (11.9%). Significant numbers of respondents said the TCJA had made it possible to increase wages or provide bonuses to employees (34.7%); hire additional employees (30.7%); or expand training and workforce development programs (28.7%).
• 2025 tax reform outlook: If future tax reforms provided similar financial benefits, company executives said they would utilize the savings to invest in new or expanded U.S. facilities; hire additional U.S. staff or hike wages/benefits; and/or increase R&D spending.
• Tax policy priorities: Asked to rate certain tax policies on how impactful they would be in encouraging domestic manufacturing expansion, 63% favored a lower 15% corporate tax rate; 58% said restoring 100% bonus depreciation of capital expenditures; 58% called for keeping the 21% corporate income tax rate; 46% backed the restoration of full, immediate R&D expensing; and 45% urged continuation of the 199A 20% pass-through deduction.
• Tariff impacts: 40.4% said the U.S. tariff policy would have a “significant” impact on their companies, with major operational or financial adjustments required. 42.4% said they would have a “moderate “impact; 11.1% said they would have little or no impact; and 6% said it was too early to tell.
• Tariff response strategies: The top strategies for responding to the tariffs are raising prices (78.8%); seeking new suppliers (51.5%); and investing in automation (24.2%) or other efficiencies (31.3%). Only 22.6% of respondents are considering bringing production back to the United States; 77.4% said “no” or “not yet.” 

Taken together, the survey responses point to the need for a comprehensive, constructive U.S. Electronics Manufacturing Strategy, covering taxation, tariffs, workforce, and domestic investment in key electronics technologies. IPC will be rolling out that strategy in the days to come. 

By Seth Jacobsen, IPC sustainability program manager

Last week, I had the opportunity to attend Circularity 25 in Denver—an inspiring gathering of professionals working to advance circular solutions across industries. With hundreds of voices at the intersection of design, policy, technology, and business, the message was clear: Circularity is not just an environmental imperative—it’s a smart business strategy. 

Key themes throughout the event emphasized a shift in mindset: 

• Designing for next use, not just end-of-life
• Circularity as a tool to unlock business value
• Recognizing that our linear systems are not built for long-term resilience 

Some of the most impactful sessions I attended included: 

• Designing Out Linearity in New Product Development -- How can product design extend a product’s lifespan? How can stakeholders across the supply chain collectively push suppliers to adopt circular design faster?
• Carbon Emissions and Scope 3 -- How can businesses measure the carbon impact of circular practices like reuse, repair, and remanufacturing?
• How to Build Your Circular Economy Roadmap -- How can companies turn circularity ambitions into actionable strategies? What are the essential elements of a roadmap that balances vision and practical implementation?
• Beyond Compliance: Leveraging Digital Product Passports -- How can businesses use Digital Product Passports (DPPs) not just to adhere to forthcoming regulations but to drive brand value, customer trust, and supply chain resilience?

Each session offered a mix of inspiration and pragmatic insights. One recurring theme was that circularity flourishes when the customer becomes the supplier, transforming the take-make-waste model into regenerative systems. Another takeaway: Many of the technologies needed to enable circularity are yet to be invented, underscoring the need for ongoing innovation and cross-sector collaboration. 

For the electronics industry, the relevance is undeniable. We see real opportunities where resource efficiency leads to improved margins, reduced risk, and long-term growth. But perhaps the most important reminder from this conference is that articulating the business case is essential—to drive adoption, to secure investment, and to turn strategy into action. 

Why Circularity Makes Good Business Sense

One of the most consistent messages from Circularity 25 was that circularity is not just an environmental strategy—it’s a business imperative. Companies that embrace circular practices are seeing tangible benefits across several key areas:

1. Stronger Supply Chains and Material Security

Circularity strengthens supply chain resiliency by reducing reliance on fragile, globalized systems and mitigating risks tied to the availability of critical materials. For industries like electronics—where inputs such as rare earth elements, cobalt, and lithium are essential yet increasingly scarce or geopolitically sensitive—circular strategies like material recovery, reuse, and modular design can secure access to key resources. By diversifying material sources and closing loops, companies are better positioned to weather supply disruptions and reduce their exposure to volatile commodity markets.

2. Access to New Customers and Markets

Offering products that are designed for longevity, repairability, or take-back services can open doors to customers looking to meet their own sustainability goals. In addition, emerging policy frameworks—such as right-to-repair regulations or extended producer responsibility (EPR) laws—are creating markets that reward circular innovation.

3. Operational Cost Savings through Resource Efficiency

Resource-efficient design doesn’t just reduce environmental impact—it also lowers costs. Whether it's optimizing material use, reducing energy and water consumption, or minimizing waste generation, circular strategies can lead to real operational savings. For manufacturers operating on tight margins, especially in electronics, these efficiencies can be the difference between profit and loss.

As someone working to support sustainability across a global industry, a message from one of the keynotes resonated with me: We’ve made progress on the “why” and we’re seeing more examples of the “what.” Now it’s time to focus on the “how.” 

To learn how IPC supports the electronics industry on sustainability challenges and issues, visit www.ipc.org/evolve.

Measuring the effectiveness of training requires a systematic approach to data collection and analysis. Here’s a step-by-step guide to calculating the ROI of your training programs:

Step 1: Identify Key Performance Indicators (KPIs) & Responsibilities

Identify KPIs that your training program aims to improve. Your KPIs should relate directly to measurable outcomes for direct and indirect benefits.

• Direct Benefits: Productivity, quality, cost, and operational efficiency metrics.
• Indirect Benefits: Employee retention, customer satisfaction, and innovation metrics. 

Then, determine who will be responsible for each of the remaining steps in the ROI Evaluation process. For example, your MES and ERP specialist will document the pre training metrics and collect the post training data exactly 3 months after the trained individuals are placed on the line. Having settled on an analytical method (e.g., control groups, A/B testing, trendline analysis, benchmarking, etc.) your first shift QA engineer will use an ROI calculation model, such as cost-benefit analysis, to determine the value of your gains or loses.

Step 2: Establish Baseline Data

Use production reports, quality control audits, financial accounting systems, and HR systems to gather baseline data for each of the KPIs you identified in step one. Your pre-training performance metrics might include productivity levels, defect rates, operational costs, employee retention rates, customer satisfaction levels, and employee engagement scores. 

Step 3: Post-Training Data Collection

After training, continue to collect data on the same KPIs to determine improvements across both direct and indirect benefits. Ongoing tracking helps determine the extent of improvements across both direct and indirect benefits.

Step 4: Compare Pre- and Post-Training Data

Compare post-training data against baseline data to quantify improvements. For example, measure productivity increases, defect rate reductions, and cost savings. 

Step 5: Calculate the Cost of Training

Account for all associated expenses, including both direct and indirect costs. Direct costs include tangible, trackable expenses such as trainer fees, course materials, software licenses, and participant wages paid during training. They may also cover ongoing coaching, refresher courses, post-training support, and program evaluation activities.

Indirect costs refer to less visible but necessary resources, such as administrative time, facility usage, utilities, and general overhead. While opportunity cost—the lost productivity of participants while attending training—is a valid business consideration, it’s not always included in ROI calculations unless the time away from core tasks significantly impacts operations.

Step 6: Apply ROI Calculation Models

Use ROI calculation models to quantify the financial return on the training investment.

Cost-Benefit Analysis: Compares direct and indirect financial benefits to the total cost of the training program.

Balanced Scorecard: Considers financial metrics along with customer satisfaction, internal process improvements, and employee growth.

Benchmarking: Compares pre-training performance, post-training results, and industry standards.

Measure for Success

Calculating the ROI of training isn't just about showing value—it's about maximizing your investment in your people and processes. By following a structured approach, you can clearly demonstrate how training impacts critical areas like productivity, quality, employee retention, and customer satisfaction.

The key is systematically defining measurable objectives, collecting meaningful pre- and post-training data, and applying appropriate analytical methods. Remember to consider both direct benefits, such as increased productivity and cost savings, as well as indirect benefits like improved engagement and retention. Accurately calculating your training costs ensures that your ROI results reflect the true impact of your investment.

Ultimately, measuring training ROI isn't just a retrospective exercise. It's a strategic practice that helps your company optimize resources, justify training budgets, and continuously improve workforce development.

Need help organizing, implementing, or evaluating your training initiatives? I'm here to guide you every step of the way. Feel free to reach out to discuss your training goals and ROI measurement strategies. Let’s ensure your training delivers measurable value and aligns with your company's long-term success.
Carlos Plaza, IPC Senior Director of Education