H.R. 9921: American Shipyard Investment Act of 2026

This bill would create a new federal tax credit for investing in U.S. shipyard facilities.

What the tax credit would do

The bill adds a new shipyard investment tax credit to the Internal Revenue Code. In general, a taxpayer could claim a credit equal to 25% of qualified investment costs for a qualified shipyard facility. If the facility is in a designated economically distressed area known as an Opportunity Zone, the credit would increase to 35%.

The credit would apply to the basis of certain property placed in service at the facility during the tax year. In plain terms, that means costs tied to eligible equipment or other qualifying property used in the shipyard could count toward the credit.

What counts as a qualified shipyard facility

A facility would qualify if it is located in the United States, including U.S. territories and possessions, and its main purpose is one of the following:

• building or repairing commercial or military vessels;
• making components that are critical to operating commercial or military vessels, as determined by the Treasury Secretary in consultation with the Navy and the Maritime Administrator; or
• making equipment used to produce or repair commercial or military vessels.

How the credit could be used

The bill would allow the shipyard credit to be used under existing tax rules that let some taxpayers:

• receive direct payment of the credit in certain cases, and
• transfer the credit to another taxpayer.

It also provides that the credit would not be subject to one of the usual limits that can apply to some shipping-related tax rules.

Timing

The credit would apply only to property placed in service after the date the bill is introduced. The bill also says the credit would end after December 31, 2033.

Administrative details

The Treasury Secretary would be directed to issue regulations or other guidance needed to carry out the new credit. The bill also makes conforming changes to related tax sections so the new credit fits into the existing tax code structure.

Relevant Companies

None found