,i #aaith ,,congress #b;d ,session ,h4 ,r4 #iiba ,,in ,,the ,,house ,,of ,,representatives ,july #bc1 #bjbf,mr4 ,moran 7for himself and ,mr4 ,kelly of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to support the national defense and economic security of the ,united ,states by incentivizing the construction of ,united ,states shipyards4 #a4 ,short title ,this ,act may be cited as the ,american ,shipyard ,investment ,act of #bjbf4 #b4 ,credit for construction of shipyard facilities 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,credit for construction of shipyard facilities 7a7 ,in general ,for purposes of section #df1 the shipyard investment tax credit for any taxable year is an amount equal to #be percent of the qualified investment for such taxable year with respect to any qualified shipyard facility of a taxpayer described in section #dh;,d7c77#a74 ,in the case of any qualified shipyard facility located in an area described in section #adjj,z-#a1 the preceding sentence shall be applied by substituting #ce percent for #be percent4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of subsection 7a71 the qualified investment with respect to any qualified shipyard facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified shipyard facility4 7#b7 ,qualified property ,the term qualified property shall have the same meaning given such term in section #dh;,d7b77#b71 except that subparagraph 7,a77iv7 of such section shall be applied by substituting qualified shipyard facility for advanced manufacturing facility4 7#c7 ,qualified shipyard facility ,for purposes of this section1 the term qualified shipyard facility means a facility-- 7,a7 which is located within the ,united ,states 7including any territory or possession of the ,united ,states71 and 7,b7 for which the primary purpose is-- 7i7 constructing or repairing commercial or military vessels1 7ii7 manufacturing components which are critical 7as determined by the ,secretary1 in consultation with the ,secretary of the ,navy and the ,maritime ,administrator7 to the operation of commercial or military vessels1 or 7iii7 manufacturing equipment which is used to produce or repair commercial or military vessels4 7#d7 ,certain progress expenditure rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7c7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 7d7 ,termination of credit ,the credit allowed under this section shall not apply to property placed in service after ,december #ca1 #bjcc4 4 7b7 ,conforming amendments 7#a7 ,section #df of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#f71 by striking and at the end1 7,b7 in paragraph 7#g71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7#h7 the shipyard investment tax credit4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 in clause 7vii71 by striking and at the end1 7,b7 in clause 7viii71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7ix7 the basis of any qualified property 7as defined in subsection 7b77#b7 of section #dh;,f7 which is part of a qualified shipyard facility 7as defined in subsection 7b77#c7 of such section74 4 7#c7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,e7e7 and inserting #dh;,e7e71 or #dh;,f7b77#d74 7#d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,e the following new item3 ,sec4 #dh;,f4 ,shipyard investment tax credit4 4 7c7 ,elective payment and transfer of credit 7#a7 ,elective payment ,section #fdag of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7b71 by adding at the end the following3 7#ac7 ,the shipyard investment tax credit under section #dh;,f4 1 and 7,b7 in subsection 7d77#a7-- 7i7 in subparagraph 7,e71 by striking 7,c71 or 7,d7 each place it appears and inserting 7,c71 7,d71 or 7,e71 7ii7 by redesignating subparagraph 7,e7 7as amended by clause 7i77 as subparagraph 7,f71 and 7iii7 by inserting after subparagraph 7,d7 the following3 7,e7 ,election with respect to the shipyard investment tax credit ,if a taxpayer other than an entity described in subparagraph 7,a7 makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service any qualified property which is part of a qualified shipyard facility 7as defined in section #dh;,f71 such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year1 but only with respect to the credit described in subsection 7b77#ac74 4 7#b7 ,transfer ,section #fdah7;f77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7xii7 ,the shipyard investment tax credit under section #dh;,f4 4 7d7 ,exception relating to alternative tax on qualifying shipping activities ,section #aceg7;c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in paragraph 7#a71 by striking paragraph 7#b7 and inserting paragraph 7#b7 or 7#d71 and 7#b7 by adding at the end the following new paragraph3 7#d7 ,exception for shipyard investment tax credit ,paragraph 7#a7 shall not apply with respect to any credit allowed to the taxpayer under section #dh;,f4 4 7e7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the introduction of this ,act4