American Shipyard Investment Act

Full Title:
American Shipyard Investment Act of 2026

Summary#

The American Shipyard Investment Act of 2026 would add a new federal tax credit to encourage building and upgrading U.S. shipyards. The credit would be added to the Internal Revenue Code as section 48F.

Key points from the bill text:

  • The credit equals 25% of a taxpayer’s qualified investment in a qualified shipyard facility for the tax year. If the facility is in an area described in section 1400Z-1, the credit is 35%.
  • "Qualified shipyard facility" is defined as a U.S. facility whose primary purpose is either (1) constructing or repairing commercial or military vessels, (2) making components that the Secretary (with Navy and Maritime Administrator input) finds critical to vessel operation, or (3) making equipment used to produce or repair vessels.
  • "Qualified property" is tied to the existing definition in section 48D(b)(2) with a substitution to apply to shipyard facilities.
  • Certain progress-expenditure rules like those in section 46(c)(4) and (d) are applied.
  • The credit expires for property placed in service after December 31, 2033.
  • The Treasury Secretary must issue regulations or guidance to implement the section.
  • The bill also adds provisions allowing an elective payment or transfer of the credit (changes to sections 6417 and 6418) and creates an exception so another tax rule (section 1357(c)) does not apply to this new credit.
  • The amendments apply to property placed in service after the bill’s introduction.

The bill was introduced in the House on July 23, 2026, by Representatives Nathaniel Moran and Mike Kelly and was referred to the House Committee on Ways and Means.

What it means for you#

  • Businesses that build or upgrade shipyards or buy eligible equipment could claim a tax credit equal to 25% of qualifying investments. If the shipyard is in a section 1400Z-1 area, the credit could be 35%.
  • The credit applies only to "qualified property" placed in service after the bill’s introduction and not later than December 31, 2033.
  • The Treasury will write rules to explain which projects and costs qualify.
  • The bill includes rules that let some taxpayers elect a payment or transfer of the credit instead of using it on their tax return.

Expenses#

No publicly available information.

Proponents' View#

The bill text states its purpose is to "support the national defense and economic security of the United States by incentivizing the construction of United States shipyards."

Opponents' View#

No publicly available information.