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Bill

HR 9921

American Shipyard Investment Act of 2026

119th Congress Introduced by Mike Kelly and 1 co-sponsor

Creates the Shipyard Investment Tax Credit (48F) to spur U.S. shipyard construction/repair, with 25% (35% in certain areas) qualified investment through 2033.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9921

Purpose and intent

  • Introduces the American Shipyard Investment Act of 2026 to amend the Internal Revenue Code and incentivize the construction of United States shipyards.
  • Aims to bolster national defense and economic security by promoting investment in U.S. shipyard facilities, including construction, repair, and related manufacturing activities.

Key provisions and changes

  • Create a new credit: Section 48F establishes the Shipyard Investment Tax Credit (SITC).
    • Credit rate: 25% of qualified investment for a qualified shipyard facility.
    • Enhanced rate: 35% for qualified shipyard facilities located in an area described in section 1400Z-1 (infrastructure/Opportunity Zone-like areas).
  • Qualified investment and property:
    • Qualified investment equals the basis of qualified property placed in service during the tax year that is part of a qualified shipyard facility.
    • Qualified property includes property defined similarly to "qualified property" under existing related provisions, with the term “qualified shipyard facility” replacing “advanced manufacturing facility” in certain contexts.
    • A qualified shipyard facility is:
    • Located in the United States (including territories/possessions).
    • Primarily used for constructing or repairing commercial or military vessels; manufacturing components critical to vessel operation (as determined jointly by the Secretary, Secretary of the Navy, and Maritime Administrator); or manufacturing equipment used to produce or repair vessels.
    • Progress expenditure rules from prior law (analogous to 46(c)(4) and (d) rules before 1990) apply for SITC purposes.
  • Regulations and administration:
    • The Secretary must issue regulations or guidance necessary to implement the SITC.
  • Termination:
    • The credit would not apply to property placed in service after December 31, 2033.
  • Conforming amendments:
    • Adds SITC to the list of general business credits (to be treated as a section 46 credit, with corresponding amendments to other code sections to reflect the new credit).
    • Adjusts related reference points in sections 49 and 50 to incorporate the SITC as part of the basis of property and related tax treatment.
  • Elective payment and transfer:
    • Includes provisions for elective payment of the SITC and transfer provisions, aligning with existing mechanisms in section 6417 and 6418, with new subparagraphs allowing taxpayers to elect treatment and facilitate transfer of the credit.
  • Alternative minimum tax (AMT) exception:
    • Amends the AMT exception for qualifying shipping activities to exclude the SITC (i.e., the AMT credit exception does not apply to the SITC, reinforcing its separate treatment).
  • Effective date:
    • The amendments apply to property placed in service after the date of introduction of the Act.

Who is affected

  • Taxpayers that place in service qualified property as part of a qualified shipyard facility in the United States.
  • Businesses involved in constructing, repairing, or manufacturing vessels or components critical to vessel operation, or equipment used in shipyards.
  • Entities located in designated qualified areas (areas described in section 1400Z-1) receive a higher 35% credit rate.
  • Taxpayers and financial/operational planners using tax credits for shipyard investments, including potential electivity and transfer arrangements.

Procedural and timeline aspects

  • Introduction and referral: Introduced July 23, 2026, in the House (H.R. 9921) by Rep. Moran, with Rep. Kelly as a co-sponsor.
  • Committee action: Referred to the House Committee on Ways and Means (no further actions listed here).
  • Sunset: The credit terminates for property placed in service after December 31, 2033.
  • Effective date for amendments: Applies to property placed in service after the date of introduction of the Act.

Bottom-line takeaway

The bill creates a new federal tax credit (Shipyard Investment Tax Credit, 48F) to encourage the development and modernization of U.S. shipyards, with a higher credit of 35% in designated areas. It defines what constitutes a qualified shipyard facility, outlines the property that qualifies, and provides administrative, transfer, and AMT-related provisions. The policy is designed to strengthen national defense and economic security by promoting domestic shipyard capacity, with a 2033 sunset for the credit.

Compiled from official sources — confirm details with the bill’s official record.

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