HR 9911

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IN THE HOUSE OF REPRESENTATIVES

July 23, 2026

Mr. Kelly of Pennsylvania (for himself and Mr. Moran) 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 allow maritime prosperity zones to be designated as qualified opportunity zones, and for other purposes.

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 “Shipbuilding Investment and Workforce Act”.

SEC. 2. MARITIME PROSPERITY ZONES DESIGNATED AS QUALIFIED OPPORTUNITY ZONES.

(a) In General.—Section 1400Z-1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(f) Maritime Prosperity Zones.—

“(1) In general.—Notwithstanding any other provision of this section, a population census tract that is a maritime prosperity zone that is designated as a qualified opportunity zone under paragraph (2) shall be treated as a qualified opportunity zone for purposes of this subchapter.

“(2) Designation.—For purposes of paragraph (1), a population census tract that is a maritime prosperity zone is designated as a qualified opportunity zone if—

“(A) the Secretary of Commerce—

“(i) in consultation with the appropriate officials, nominates the tract for designation as a qualified opportunity zone, and

“(ii) notifies the Secretary in writing of such nomination, and

“(B) the Secretary certifies such nomination and designates such tract as a qualified opportunity zone.

“(3) Definitions.—For purposes of this subsection—

“(A) Maritime prosperity zone.—The term ‘maritime prosperity zone’ means a population census tract that is determined by the Secretary of Commerce, in consultation with the appropriate officials, to be an appropriate site for the operation of a maritime industry.

“(B) Appropriate officials.—The term ‘appropriate officials’ means—

“(i) the Secretary of Defense,

“(ii) the Secretary of the Navy,

“(iii) the Secretary of Transportation,

“(iv) the United States Trade Representative, and

“(v) the Director of the Office of Management and Budget.

“(4) Special rules.—

“(A) Treatment of property and trade or business with respect to maritime prosperity zones.—

“(i) In general.—For purposes of this subchapter, in the case of a population census tract which is designated as a qualified opportunity zone solely by reason of paragraph

(2)—

“(I) property shall not be treated as qualified opportunity zone business property (as defined in section 1400Z- 2(d)(2)(D)) with respect to such qualified opportunity zone unless substantially all of the use of such property, during substantially all of the holding period for such property, is in connection with a maritime industry, and

“(II) a trade or business shall not be treated as a qualified opportunity zone business (as defined in section 1400Z-2(d)(3)) with respect to such qualified opportunity zone unless substantially all of the operation of such trade or business is in connection with a maritime industry.

“(ii) Maritime industry.—For purposes of this subsection—

“(I) In general.—The term ‘maritime industry’ means any industry which is determined by the Secretary to support, directly or indirectly, the construction, reconstruction, repair, rehabilitation, or refurbishment of shipyards, ports, harbor facilities, or vessels.

“(II) Certain industries included.—Except as otherwise provided by the Secretary, any industry assigned one of the following codes under the 2022 North American Industry Classification System shall be treated as a maritime industry: “(aa) 332 (Fabricated Metal Product Manufacturing). “(bb) 3366 (Ship and Boat Building).

“(cc) 336611 (Ship Building and Repairing).

“(dd) 333923 (Overhead Traveling Crane, Hoist, and Monorail System Manufacturing). “(ee) 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). “(ff) 4883 (Support Activities for Water Transportation). “(gg) 483111 (Deep Sea Freight Transportation). “(hh) 483113 (Coastal and Great Lakes Freight Transportation).

“(ii) 483211 (Inland Water Freight Transportation). “(jj) 541330 (Engineering Services).

“(B) Limitations.—

“(i) In general.—The number of population census tracts that are maritime prosperity zones that may be designated as qualified opportunity zones under paragraph (2) at any time may not exceed 100.

“(ii) Limitation on number of low-income community designations unchanged.—A population census tract that is a maritime prosperity zone that is designated as a qualified opportunity zone under paragraph (2) shall not be taken into account in determining the limitation under subsection (d).”.

(b) Basis Increase for Investments in Qualified Maritime Prosperity Funds.—Section 1400Z-2(b)(2) of such Code (as amended by section 70421(c)(2) of Public Law 119-21) is amended—

(1) in subparagraph (B)(iii)(I), by inserting “or a qualified maritime prosperity fund” after “qualified rural opportunity fund”, and

(2) by adding at the end the following new subparagraph:

“(D) Qualified maritime prosperity fund.—For purposes of subparagraph (B)(iii), the term ‘qualified maritime prosperity fund’ has the same meaning given the term ‘qualified rural opportunity fund’, determined by substituting ‘maritime prosperity zone (as defined in section 1400Z-1(f)(3)(A))’ for ‘qualified opportunity zone comprised entirely of a rural area’ each place it appears.”.

(c) Conforming Amendments.—

(1) Section 1400Z-1(d)(1) of such Code is amended by striking “under this section” and inserting “under subsection (b)”.

(2) Section 1400Z-1(e)(2) of such Code is amended—

(A) by striking “under this section” and inserting “under subsection (b) or (f)(2)”, and

(B) by striking “subsection (b)(1)(B)” and inserting “subsection (b)(1)(B) or (f)(2)(B) (as the case may be)”.

(d) Effective Date.—The amendments made by this section shall take effect beginning after December 31, 2026.

(e) Deadline To Begin Nomination and Notification Process.—Not later than July 1, 2027, the Secretary of Commerce shall begin the nomination and notification process referred to in clauses (i) and (ii) of section 1400Z-1(f)(2)(A) of the Internal Revenue Code of 1986 (as added by subsection (a)). <all>