H.R. 4589: Port Crane Tax Credit Act of 2025

The Port Crane Tax Credit Act of 2025 proposes changes to the U.S. tax code aimed at encouraging the domestic manufacturing of port cranes. The legislation includes two main credit types that benefit companies involved in the production and investment in port crane manufacturing facilities.

Port Crane Manufacturing Facility Investment Credit

This section establishes a tax credit for investments made in facilities that manufacture port cranes. Key points include:

• Credit Rate: Companies can receive a tax credit equal to 25% of their qualified investments in a port crane manufacturing facility for each taxable year.
• Qualified Investments: Costs that qualify for this credit include tangible property integral to the operation of the manufacturing facility, such as buildings and machinery, provided these are newly constructed, reconstructed, or acquired during the taxable year.
• Eligible Facilities: Facilities must be located in the U.S. and primarily focus on constructing or repairing port cranes or manufacturing their critical components.
• Exclusion: Buildings or parts used for administrative purposes do not qualify for this credit.
• Credit Termination: The tax credit will not apply to property placed in service after December 31, 2035.

Port Crane Production Credit

This section introduces another tax credit based on the production and sale of port cranes. Key features include:

• Eligibility: Taxpayers may receive credits for port cranes they produce in the U.S. and sell during the taxable year to unrelated persons.
• Credit Amounts: The credit for these sales can be as high as 60% of the sale price if 90% of the materials used are domestically produced; otherwise, it is 40% of the sale price.
• Phased Phase-Out: The tax credit amounts will gradually decrease for cranes produced in subsequent years, with credits eventually being phased out completely after 2036.

Additional Provisions

The bill also includes several provisions regarding the treatment of the credits:

• The credits can be treated as payments against tax liabilities, allowing taxpayers to receive the benefits more flexibly.
• Both types of credits are transferable and can be utilized in general business calculations.

Effective Date

The amendments and credits outlined in this bill will apply to property placed in service in taxable years beginning after the enactment of this Act.

Relevant Companies

• DE (Deere & Company) - As a manufacturer involved in heavy machinery, Deere may benefit from the incentives for producing cranes.
• TEX (Terex Corporation) - Terex is engaged in manufacturing cranes and could directly benefit from the production credit provisions.
• CMI (Cummins Inc.) - As a supplier of components and engines used in cranes, Cummins may also see benefits indirectly through increased demand for machinery.