Sec. 7. Credit for construction of shipyard facilities
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Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by section 2(a), is amended by inserting after section 48F the following new section: For purposes of section 46, the shipyard investment tax credit for any taxable year is an amount equal to 25 percent of the qualified investment for such taxable year with respect to any qualified shipyard facility of a taxpayer described in section 48D(c)(1). For purposes of subsection (a), 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 facility.
The term qualified property shall have the same meaning given such term in section 48D(b)(2), except that subparagraph (A)(iv) of such section shall be applied by substituting qualified shipyard facility for advanced manufacturing facility . For purposes of this section, the term qualified shipyard facility means a facility— which is located within the United States (including any territory or possession of the United States), and for which the primary purpose is— constructing or repairing commercial or military oceangoing vessels, manufacturing components which are critical (as determined by the Secretary, in consultation with the Secretary of the Navy and the Maritime Administrator) to the operation of commercial or military oceangoing vessels, or manufacturing equipment which is used to produce or repair commercial or military oceangoing vessels.
Rules similar to the rules of subsections (c)(4) and
(d)of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). This section shall not apply to any property placed in service by the taxpayer during the taxable year if a credit was allowed under section 48F to such taxpayer during such taxable year. The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section. The credit allowed under this section shall not apply to property placed in service after December 31, 2032. . Section 46 of the Internal Revenue Code of 1986, as amended by section 2(b)(1), is amended— in paragraph (7), by striking and at the end, in paragraph (8), by striking the period at the end and inserting , and , and by adding at the end the following: the shipyard investment tax credit. . Section 49(a)(1)(C) of such Code, as amended by section 2(b)(2), is amended— in clause (viii), by striking and at the end, in clause (ix), by striking the period at the end and inserting , and , and by adding at the end the following: the basis of any qualified property (as defined in subsection (b)(2) of section 48G) which is part of a qualified shipyard facility (as defined in subsection (b)(3) of such section). . Section 50(a)(2)(E) of such Code, as amended by section 13702(b) of Public Law 117–169, is amended by striking or 48E(e) and inserting 48E(e), or 48G(b)(4) . The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code, as amended by section 2(b)(3), is amended by inserting after the item relating to section 48F the following new item: Sec. 48G. Shipyard investment tax credit. . Section 6417 of the Internal Revenue Code of 1986, as amended by section 2, is amended— in subsection (b), by adding at the end the following: The shipyard investment tax credit under section 48G. , and in subsection (d)(1)— in subparagraph (F), by striking (D), or
(E)each place it appears and inserting (D), (E), or
(F), by redesignating subparagraph
(F)(as amended by clause (i)) as subparagraph (G), and by inserting after subparagraph
(E)the following: If a taxpayer other than an entity described in subparagraph
(A)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 (as defined in section 48G), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(14). . Section 6418(f)(1)(A) of the Internal Revenue Code of 1986, as amended by section 2, is amended by adding at the end the following: The shipyard investment tax credit under section 48G. . Paragraph
(4)of section 1357(c) of the Internal Revenue Code of 1986, section 2(e), is amended to read as follows: Paragraph
(1)shall not apply with respect to any credit allowed to the taxpayer under section 48F or 48G. . The amendments made by this section shall apply to property placed in service after December 31, 2025.
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Sec. 7
Credit for construction of shipyard facilities
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