To amend the Internal Revenue Code of 1986 to support the national defense and economic security of the United States by incentivizing the construction of United States shipyards.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9921 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9921

  To amend the Internal Revenue Code of 1986 to support the national
defense and economic security of the United States by incentivizing the
                construction of United States shipyards.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2026

 Mr. Moran (for himself and Mr. Kelly of Pennsylvania) introduced the
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

  To amend the Internal Revenue Code of 1986 to support the national
defense and economic security of the United States by incentivizing the
                construction of United States shipyards.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Shipyard Investment Act of
2026''.

SEC. 2. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:

``SEC. 48F. CREDIT FOR CONSTRUCTION OF SHIPYARD FACILITIES.

    ``(a) In General.--For purposes of section 46, the shipyard
investment tax credit for any taxable year is an amount equal to 25
percent of the qualified investment for such taxable year with respect
to any qualified shipyard facility of a taxpayer described in section
48D(c)(1). In the case of any qualified shipyard facility located in an
area described in section 1400Z-1, the preceding sentence shall be
applied by substituting `35 percent' for `25 percent'.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the
        qualified investment with respect to any qualified shipyard
        facility for any taxable year is the basis of any qualified
        property placed in service by the taxpayer during such taxable
        year which is part of a qualified shipyard facility.
            ``(2) Qualified property.--The term `qualified property'
        shall have the same meaning given such term in section
        48D(b)(2), except that subparagraph (A)(iv) of such section
        shall be applied by substituting `qualified shipyard facility'
        for `advanced manufacturing facility'.
            ``(3) Qualified shipyard facility.--For purposes of this
        section, the term `qualified shipyard facility' means a
        facility--
                    ``(A) which is located within the United States
                (including any territory or possession of the United
                States), and
                    ``(B) for which the primary purpose is--
                            ``(i) constructing or repairing commercial
                        or military vessels,
                            ``(ii) manufacturing components which are
                        critical (as determined by the Secretary, in
                        consultation with the Secretary of the Navy and
                        the Maritime Administrator) to the operation of
                        commercial or military vessels, or
                            ``(iii) manufacturing equipment which is
                        used to produce or repair commercial or
                        military vessels.
            ``(4) Certain progress expenditure rules made applicable.--
        Rules similar to the rules of subsections (c)(4) and (d) of
        section 46 (as in effect on the day before the date of the
        enactment of the Revenue Reconciliation Act of 1990) shall
        apply for purposes of subsection (a).
    ``(c) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.
    ``(d) Termination of Credit.--The credit allowed under this section
shall not apply to property placed in service after December 31,
2033.''.
    (b) Conforming Amendments.--
            (1) Section 46 of the Internal Revenue Code of 1986 is
        amended--
                    (A) in paragraph (6), by striking ``and'' at the
                end,
                    (B) in paragraph (7), by striking the period at the
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
            ``(8) the shipyard investment tax credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended--
                    (A) in clause (vii), by striking ``and'' at the
                end,
                    (B) in clause (viii), by striking the period at the
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
                            ``(ix) the basis of any qualified property
                        (as defined in subsection (b)(2) of section
                        48F) which is part of a qualified shipyard
                        facility (as defined in subsection (b)(3) of
                        such section).''.
            (3) Section 50(a)(2)(E) of such Code is amended by striking
        ``or 48E(e)'' and inserting ``48E(e), or 48F(b)(4)''.
            (4) The table of sections for subpart E of part IV of
        subchapter A of chapter 1 of such Code is amended by inserting
        after the item relating to section 48E the following new item:

``Sec. 48F. Shipyard investment tax credit.''.
    (c) Elective Payment and Transfer of Credit.--
            (1) Elective payment.--Section 6417 of the Internal Revenue
        Code of 1986 is amended--
                    (A) in subsection (b), by adding at the end the
                following:
            ``(13) The shipyard investment tax credit under section
        48F.'', and
                    (B) in subsection (d)(1)--
                            (i) in subparagraph (E), by striking ``(C),
                        or (D)'' each place it appears and inserting
                        ``(C), (D), or (E)'',
                            (ii) by redesignating subparagraph (E) (as
                        amended by clause (i)) as subparagraph (F), and
                            (iii) by inserting after subparagraph (D)
                        the following:
                    ``(E) Election with respect to the shipyard
                investment tax credit.--If a taxpayer other than an
                entity described in subparagraph (A) makes an election
                under this subparagraph with respect to any taxable
                year in which such taxpayer has placed in service any
                qualified property which is part of a qualified
                shipyard facility (as defined in section 48F), such
                taxpayer shall be treated as an applicable entity for
                purposes of this section for such taxable year, but
                only with respect to the credit described in subsection
                (b)(13).''.
            (2) Transfer.--Section 6418(f)(1)(A) of the Internal
        Revenue Code of 1986 is amended by adding at the end the
        following:
                            ``(xii) The shipyard investment tax credit
                        under section 48F.''.
    (d) Exception Relating to Alternative Tax on Qualifying Shipping
Activities.--Section 1357(c) of the Internal Revenue Code of 1986 is
amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and
        inserting ``paragraph (2) or (4)'', and
            (2) by adding at the end the following new paragraph:
            ``(4) Exception for shipyard investment tax credit.--
        Paragraph (1) shall not apply with respect to any credit
        allowed to the taxpayer under section 48F.''.
    (e) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the introduction
of this Act.
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