H.R. 9911: Shipbuilding Investment and Workforce Act

This bill would expand a federal tax-incentive program to include certain areas tied to the maritime and shipbuilding industries.

What it would create

The bill creates a new category called a maritime prosperity zone. These would be census tracts identified by the Secretary of Commerce, working with officials from the Defense Department, Navy, Transportation Department, U.S. Trade Representative, and OMB, as suitable locations for maritime industry activity.

If a maritime prosperity zone is formally nominated and certified, it would be treated as a qualified opportunity zone under existing tax law. That means investors could use the existing Opportunity Zone tax benefits in those areas.

How the zones would work

• The Secretary of Commerce would nominate a tract for designation.
• The Secretary would then certify and designate it as a qualified opportunity zone.
• At any one time, no more than 100 census tracts could be designated this way.

What kinds of businesses would qualify

The bill limits these tax benefits to property and businesses actually connected to maritime activity. In these zones, property or a business would only count for Opportunity Zone tax treatment if substantially all of its use or operations are tied to a maritime industry.

The bill defines maritime industry broadly to include industries that support the construction, rebuilding, repair, rehabilitation, or refurbishment of shipyards, ports, harbor facilities, or vessels. It also specifically includes certain NAICS industry codes, such as:

• Fabricated metal product manufacturing
• Ship and boat building
• Ship building and repairing
• Crane, hoist, and monorail system manufacturing
• Navigation and nautical instrument manufacturing
• Water transportation support activities
• Freight transportation by sea or inland water
• Engineering services

Tax treatment of investments

The bill also amends the Opportunity Zone rules so that investments in a qualified maritime prosperity fund can receive the same basis-increase treatment as certain other opportunity zone funds. In plain terms, it would extend existing tax incentives to investment funds focused on these maritime zones.

Timing

The changes would take effect after December 31, 2026. The Secretary of Commerce would be required to begin the nomination and notification process by July 1, 2027.

Relevant Companies

• HII — A major U.S. shipbuilder that could benefit if maritime zones are designated near shipbuilding or repair facilities.
• BA — Boeing is not a maritime company, but its defense and engineering operations could be indirectly relevant only if included in broader industrial activity around maritime facilities; direct impact appears limited.
• None found