May 29, 2003
Passed by Congress last week, the $350 billion tax bill will help spur investments in printed circuit board (PCB) manufacturing and electronics assembly equipment and aid in the recovery of the Interconnect Manufacturing Service/PCB and Electronics Manufacturing Service industries.
Recognizing that the U.S. electronics interconnection industry was at a distinct disadvantage over foreign competition, the IPC and its members began efforts nearly a decade ago to change the U.S. tax code and reduce the cost recovery period from five years to three for equipment used to manufacture PCBs and electronic assemblies.
These efforts paid off with the passage of The Job Creation and Workers Assistance Act of 2002, which was signed into law by President Bush on March 9, 2002. The Act contained a 30 percent accelerated depreciation benefit over the next three years for PCB manufacturing and assembly equipment.
�Today, the additional 20 percent depreciation for equipment with this new act begins to put the �real� in realistic depreciation, and it is another victory for our members and the industry,� said IPC President Denny McGuirk. �It would not have happened, though, without the IPC Government Relations Committee and the support of the IPC membership today, as well as their efforts in laying the foundation years ago, for the critical importance of the U.S. PCB and electronics assembly industries.�
In addition, this victory is only one of several initiatives the IPC Government Relations Committee is championing to help improve U.S. competitiveness. �Whether it�s environmental regulations that make sense or foreign exchange rates that are consistent with economic fundamentals, the IPC will continue to champion the U.S. manufacturing base,� McGuirk said.
For more information, contact John Kania, IPC�s director of government relations, at JKania@ipc.org or 202-962-0460.
About IPC
IPC is a Northbrook, Ill.-based trade association dedicated to the competitive excellence and financial success of its more than 2,300 member companies, which represent all facets of the electronic interconnection industry, including design, printed circuit board manufacturing and electronics assembly. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of a $40 billion U.S. industry employing more than 350,000 people. IPC maintains offices in Taos, N.M.; Washington, D.C.; Garden Grove, Calif.; and Shanghai, China. For more information, visit http://www.ipc.org.
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