WASHINGTON — Today, Congressman Nathaniel Moran (TX-01) and Congressman Mike Kelly (PA-16) introduced the American Shipyard Investment Act to rebuild America’s shipbuilding industrial base. This legislation reverses the decades-long decline of America’s shipbuilding industrial base by creating a targeted investment tax credit for shipyard construction and expansion.
“America’s ability to project naval power and sustain supply chains depends on a strong domestic industrial base,” said Rep. Moran. “This tax credit will provide greater liberty to entities investing in shipbuilding across America. We cannot continue to cede our once-dominant shipbuilding position to foreign competitors, especially China.”
“For decades, China has outpaced the United States when it comes to shipbuilding. We cannot allow China to monopolize the global shipbuilding market. This legislation incentivizes private sector investment to revitalize America’s shipbuilding industry and restore manufacturing dominance,” said Rep. Mike Kelly (PA-16).
How the Bill Works:
The American Shipyard Investment Act establishes a new investment tax credit (ITC) for the construction or expansion of qualifying U.S. shipyards:
A 25% ITC for shipyard construction or expansion
A 35% ITC for shipyards built in federally designated Opportunity Zones
To qualify, shipyards must be primarily engaged in constructing or repairing military vessels; manufacturing critical vessel components, as determined by the Secretary of the Navy and the Maritime Administrator; or manufacturing equipment used to produce or repair vessels. The credit applies to qualifying property placed in service through December 31, 2033.
Stakeholder Support:
Joshua Huel, President and CEO of Chamber of Marine Commerce: “We are especially enthusiastic about the American Shipyard Investment Act’s proposed 25 percent investment tax credit, which would provide a meaningful incentive for private investment in shipyards, helping to modernize critical infrastructure, accelerate the adoption of advanced technologies, and expand industrial strength. Such investments would strengthen the shipyard capacity that is so essential to supporting North America’s maritime economy.”
Brandon Farris, Executive Vice President of Steel Manufacturers Association: “SMA applauds introduction of the American Shipyard Investment Act, led by Rep. Nathaniel Moran. Policies that expand domestic shipbuilding capacity and revitalize our nation’s maritime industrial base are critical to supporting American-made steel. This legislation builds on recommendations in the Maritime Action Plan to leverage federal tax credits as part of a comprehensive maritime strategy for the United States. Steel manufacturers are ready to supply the steel for the next great chapter in American shipbuilding.”