To amend the Internal Revenue Code of 1986 to support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the United States maritime workforce through tax policy.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Building Ships in America Act of 2025 creates major tax incentives to revitalize the U.S. shipbuilding and maritime industries. It establishes investment tax credits for building vessels and shipyard facilities in American shipyards, excludes certain maritime security payments from taxation, and creates special opportunity zones near ports and shipyards.
Who Benefits and How
U.S. shipbuilders and shipyards receive a 25% investment tax credit for constructing or upgrading shipyard facilities, directly reducing the cost of capital investments. Vessel owners can receive tax credits of 33-40% on investments in U.S.-built cargo ships, making domestic shipbuilding more economically competitive. Maritime workers benefit as student incentive payments become tax-free, and the industry overall receives expanded tax advantages through enhanced capital construction fund rules. Investors gain access to new maritime prosperity zones (up to 100 census tracts) with opportunity zone tax benefits.
Who Bears the Burden and How
Foreign shipbuilders and vessel owners, particularly those from countries of concern like China, face significant market barriers as the credits specifically exclude foreign-built ships and equipment. The bill prohibits capital construction fund withdrawals for fully automated cargo equipment that would cause job losses, limiting automation options. Chinese crane manufacturers are specifically barred from capital construction fund purchases. Federal taxpayers bear the cost of foregone tax revenue from these credits and exclusions.
Key Provisions
- Creates 33-40% tax credit for U.S.-built cargo vessels with emergency preparedness agreements
- Establishes 25% tax credit for shipyard facility construction and upgrades
- Excludes maritime security payments and student incentive payments from gross income
- Designates up to 100 maritime prosperity zones eligible for opportunity zone investments
- Expands merchant marine capital construction funds to include cargo handling equipment
- Extends fuel tax exemptions to vessels in domestic coastal trade
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Provides comprehensive tax incentives to strengthen U.S. maritime industry, shipbuilding capacity, and domestic shipping workforce through investment credits, income exclusions, and opportunity zone designations.
Key Policy Areas
Maritime, Taxation, National Defense, Economic Development, Trade
Primary Purpose
Provides comprehensive tax incentives to strengthen U.S. maritime industry, shipbuilding capacity, and domestic shipping workforce through investment credits, income exclusions, and opportunity zone designations.
Policy Domains
Vessel Investment Credits (Sections 2-6)
Identified Gains
Contextual inference, no direct clause citation- U.S. shipbuilders
- Vessel owners and operators
- U.S. maritime insurers
- American Bureau of Shipping
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Foreign shipbuilders
- Entities from countries of concern
Contextual inference, no direct clause citation
Shipyard Investment Credits (Section 7)
Identified Gains
Contextual inference, no direct clause citation- U.S. shipyards
- Shipyard equipment manufacturers
- Defense industrial base
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Foreign shipyard equipment suppliers
Contextual inference, no direct clause citation
Income Exclusions (Sections 3, 9)
Identified Gains
Contextual inference, no direct clause citation- Maritime security program participants
- Maritime academy students
- Vessel operators receiving federal subsidies
Contextual inference, no direct clause citation
Maritime Prosperity Zones (Section 11)
Identified Gains
Contextual inference, no direct clause citation- Port communities
- Maritime infrastructure investors
- Shipyard developers
Contextual inference, no direct clause citation
Capital Construction Funds (Section 8)
Identified Gains
Contextual inference, no direct clause citation- Vessel operators
- Marine terminal operators
- U.S. cargo handling equipment manufacturers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Chinese crane manufacturers
- Automated equipment manufacturers
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Kelly (for himself, Mr. Young, Ms. Murkowski, Ms. Baldwin, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bulk carrier, tanker, and container vessel owners, Cable ship operators in security programs, Cargo shipping companies
Positive-direction: Bulk carrier, tanker, and container vessel owners, Cable ship operators in security programs, Cargo shipping companies, Cargo vessel operators in foreign trade, Deep sea and coastal freight operators, Domestic coastal shipping operators, International shipping companies with U.S. management, Jones Act vessel operators, Marine component manufacturers, Marine terminal operators, Marine terminal workers, Maritime Security Program participants, Maritime industry businesses in eligible census tracts, Port communities and shipyard regions, Shipping companies with mixed domestic/foreign operations, Tanker Security Fleet operators, U.S. citizens owning foreign-flagged vessels, U.S. flag vessel operators in tonnage tax regime, Vessel operators receiving federal maritime security payments, Vessel operators with capital construction funds, Vessel owners investing in U.S.-built ships
Negative-direction: Entities from countries of concern (China, Russia, etc.)
Foreign shipbuilders, Ship and boat building businesses in designated zones, Shipyard facility investors
Positive-direction: Ship and boat building businesses in designated zones, Shipyard facility investors, U.S. shipbuilders and shipyards, U.S. shipyards
Negative-direction: Foreign shipbuilders
Automated cargo handling equipment manufacturers, Chinese crane manufacturers, Shipyard equipment manufacturers
Positive-direction: Shipyard equipment manufacturers, U.S. cargo handling equipment manufacturers
Negative-direction: Automated cargo handling equipment manufacturers, Chinese crane manufacturers
U.S. Navy (defense industrial base), U.S. defense industrial base
Maritime academy students receiving federal stipends, U.S. Merchant Marine Academy and state maritime academies
American Bureau of Shipping and U.S. classification societies
Qualified opportunity funds investing in maritime zones
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "maritime_administrator"
- → Maritime Administrator (MARAD)
- "the_secretary"
- → Secretary of the Treasury
- "secretary_of_navy"
- → Secretary of the Navy
- "maritime_administrator"
- → Maritime Administrator
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
- "secretary_of_navy"
- → Secretary of the Navy
- "maritime_administrator"
- → Maritime Administrator
Key Definitions
Terms defined in this bill
A U.S. flag cargo vessel (bulk carrier, tanker, container, roll-on/roll-off, etc.) built in a U.S. shipyard with 10+ year operating agreement and emergency preparedness commitment, not associated with foreign entities of concern
A census tract containing or viable for a U.S. shipyard, port, or harbor facility, designated by Maritime Administrator and certified by Treasury Secretary (max 100 tracts)
Foreign entities designated as terrorist organizations, sanctioned by OFAC, controlled by adversary governments, convicted of espionage/export violations, or designated as controlled carriers by FMC
A covered nation under 10 USC 4872(d) or any country determined detrimental to U.S. national security by Maritime Administrator
A U.S. facility for constructing/repairing oceangoing vessels, manufacturing critical vessel components, or manufacturing vessel production equipment
A vessel documented under non-adversary foreign registry, owned by U.S. citizens who also own U.S. flag vessels, managed from the U.S., with emergency preparedness agreements
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology