Issue link: https://iconnect007.uberflip.com/i/1535183
MAY 2025 I DESIGN007 MAGAZINE 59 with the deficit. So, the House and Senate are negotiating on the scope and duration of these provisions. Of course, we would like to see as much incen- tive as possible for our IPC members who are investing in building their manufacturing capabilities. Currently, the Senate is adamant about making these provisions permanent without an expiration. e House has a much more fiscally conservative membership and they want to take a chunk out of the federal deficit. e length in terms of provisions will be negotiated over the next few weeks. We surveyed IPC members about taxes, and in their responses, they said their top three issues are keeping the corporate tax rate low, restoring immediate R&D expens- ing, the 100% depreciation bonus, and, for small and medium-sized companies, ensur- ing the 199A pass-through deduction contin- ues. We have been and continue to meet with legislators in the House and Senate to stress how important these provisions are to build- ing a stronger domestic electronics industry. Additionally, we're pressing for the PCB tax credit, while also keeping tabs on opportuni- ties to expand other credits like the Advanced Manufacturing Investment Credit from the CHIPS Act or the Advanced Manufactur- ing Production Credits from the Inflation Reduction Act. Adding and expanding cred- its will all add to the deficit and are difficult to achieve. But we are making the case that you can't have tariffs and not have tax incentives to build manufacturing in the United States. at would be a difficult recipe for businesses to remain profitable in the U.S. Matties: Not just profitable, but to remain in existence, because even with the tariffs, that doesn't allow us to be competitive. A lot of investment will be in AI and automation where we seem to be years behind. When we talk to factory owners about bringing in CFX, automation, AI, or even just a strong MES program, they say it's daunting—maybe not for the top tiers, but for 80% of these guys, there's no blueprint. They don't understand what to do. They may not have the staff or the technology, yet we still have to compete on labor and efficiencies. How can IPC help its members during this important transition period? Johnson: That sentiment was very clear during the benchmarking portion at the APEX EXPO EMS Summit. Those integration projects are perceived as very difficult and very expensive. e Solutions Team at IPC is working hard to serve the industry and help move every- one toward the Factory of the Future. On the advocacy side, we're communicating with policymakers that this transition must occur in the United States and that the industry needs those tax incentives to enable them to make those investments. at's been part of our message for several years now. Recently, there were some opportunities to formally comment to the federal govern- ment on the proposed tariffs. We said, "If the federal government is raising the cost of materials and equipment that U.S. manufac- turers need to enhance their capabilities, it really harms U.S. manufacturers' ability to compete. Every dollar spent on increased material costs, compliance, and re-engineer- ing supply chains is a dollar not invested in upgrading their capabilities." Matties: When you're working with the admin- istration, who helps champion your cause? We have some champions in Congress, and