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H.R. 9921House119th Congress (2025-2027)In Committee

American Shipyard Investment Act of 2026

Sponsored by Nathaniel MoranRep. Nathaniel Moran (R-TX)
Introduced July 23, 2026

AI-Generated Summary

Updated July 30, 2026 at 3:21 AM UTC

The American Shipyard Investment Act of 2026 adds a new tax credit to the Internal Revenue Code to encourage building and upgrading shipyard facilities in the United States. The credit lets eligible taxpayers claim 25 % of the cost of qualified shipyard property (35 % in designated distressed areas) as a credit against their tax liability. It is aimed at companies that construct or repair commercial or military vessels, or make critical components or equipment for those vessels, and the credit is available for property placed in service through the end of 2033.

Key Provisions

  • Creates a shipyard investment tax credit equal to 25 % of qualified investment, increased to 35 % for facilities in areas designated under section 1400Z‑1.
  • Defines a qualified shipyard facility as a U.S. location whose primary purpose is building/repairing vessels or producing critical components or equipment for vessels.
  • Specifies that qualified investment is the basis of qualified property placed in service as part of a qualified shipyard facility.
  • Allows the credit to be claimed under section 46 and incorporated into other tax calculations, including elective payment and transfer provisions.
  • Sets the credit to expire for property placed in service after December 31, 2033.
  • Mandates the Treasury Secretary to issue regulations to implement the credit and provides an exception so the credit is not reduced by the alternative tax on qualifying shipping activities.

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. 9921

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.

1.

Short title

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

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:

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.