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H.R. 9911House119th Congress (2025-2027)In Committee

Shipbuilding Investment and Workforce Act

Sponsored by Mike KellyRep. Mike Kelly (R-PA)
Introduced July 23, 2026

AI-Generated Summary

Updated July 31, 2026 at 5:21 AM UTC

The Shipbuilding Investment and Workforce Act amends the Internal Revenue Code to let specially designated maritime areas—called maritime prosperity zones—be treated as qualified opportunity zones, which provide tax incentives for investors. The bill sets up a nomination and certification process involving the Commerce Department and several other federal officials, limits the number of such zones, and requires that any qualifying property or business be primarily linked to maritime industries. It also creates a new type of qualified fund for these investments and outlines when the changes take effect.

Key Provisions

  • Adds a new subsection to the tax code so that a census tract identified as a “maritime prosperity zone” can be treated as a qualified opportunity zone (QOZ).
  • The Secretary of Commerce, after consulting with the Secretaries of Defense, Navy, Transportation, the U.S. Trade Representative, and the OMB director, can nominate and certify such tracts as QOZs.
  • Only up to 100 maritime prosperity zones can be designated as QOZs at any time, and these designations do not count toward the existing low‑income community limits.
  • To qualify for QOZ tax benefits, the property or business must be used primarily for a “maritime industry,” defined as activities related to shipbuilding, repair, ports, or related manufacturing and services (specific NAICS codes are listed).
  • Creates a “qualified maritime prosperity fund” that is treated the same as a qualified rural opportunity fund for investment basis calculations.
  • Makes technical conforming changes to other parts of the opportunity zone code to reference the new subsection.
  • The changes become effective after December 31, 2026, and the Secretary of Commerce must start the nomination process by July 1, 2027.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 23, 2026

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HouseIntro Referral

Introduced in House

July 23, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 23, 2026

Bill Text

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Introduced in HouseIssued July 23, 2026

I

119th CONGRESS

2d Session

H. R. 9911

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.

1.

Short title

This Act may be cited as the Shipbuilding Investment and Workforce Act.

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)).