HR 9921

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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. <all>