American Shipyard Investment Act of 2026

The "American Shipyard Investment Act of 2026" proposes to amend the Internal Revenue Code of 1986 by creating a new shipyard investment tax credit. This credit is designed to support the national defense and economic security of the United States by incentivizing the construction and expansion of domestic shipyard facilities. Taxpayers can claim a credit equal to 25 percent of their qualified investment in a qualified shipyard facility, with an increased rate of 35 percent for facilities located in specific designated areas.

A qualified shipyard facility is defined as a facility located within the United States, including its territories, whose primary purpose is constructing or repairing commercial or military vessels. It also covers facilities manufacturing critical components or equipment used in the production or repair of such vessels. The credit applies to qualified property placed in service until December 31, 2033, and includes provisions for elective payment and transfer of the credit, making it more flexible for eligible entities.