H.R. 9911

119 HR 9911 IH: Shipbuilding Investment and Workforce Act
 U.S. House of Representatives
 2026-07-23
 text/xml
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 I  119th CONGRESS  2d Session  H. R. 9911  IN THE HOUSE OF REPRESENTATIVES   July 23, 2026   Mr. Kelly of Pennsylvania  (for himself and  Mr. Moran ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to allow maritime prosperity zones to be designated as qualified opportunity zones, and for other purposes.
1.
Short title
This Act may be cited as the   Shipbuilding Investment and Workforce Act  .
2.
Maritime prosperity zones designated as qualified opportunity zones
(a)
In general
 Section 1400Z–1  of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(f)
Maritime prosperity zones
(1)
In general
Notwithstanding any other provision of this section, a population census tract that is a maritime prosperity zone that is designated as a qualified opportunity zone under paragraph (2) shall be treated as a qualified opportunity zone for purposes of this subchapter.
(2)
Designation
For purposes of paragraph (1), a population census tract that is a maritime prosperity zone is designated as a qualified opportunity zone if—
(A)
the Secretary of Commerce—
(i)
in consultation with the appropriate officials, nominates the tract for designation as a qualified opportunity zone, and
(ii)
notifies the Secretary in writing of such nomination, and
(B)
the Secretary certifies such nomination and designates such tract as a qualified opportunity zone.
(3)
Definitions
For purposes of this subsection—
(A)
Maritime prosperity zone
The term  maritime prosperity zone  means a population census tract that is determined by the Secretary of Commerce, in consultation with the appropriate officials, to be an appropriate site for the operation of a maritime industry.
(B)
Appropriate officials
The term  appropriate officials  means—
(i)
the Secretary of Defense,
(ii)
the Secretary of the Navy,
(iii)
the Secretary of Transportation,
(iv)
the United States Trade Representative, and
(v)
the Director of the Office of Management and Budget.
(4)
Special rules
(A)
Treatment of property and trade or business with respect to maritime prosperity zones
(i)
In general
For purposes of this subchapter, in the case of a population census tract which is designated as a qualified opportunity zone solely by reason of paragraph (2)—
(I)
property shall not be treated as qualified opportunity zone business property (as defined in section 1400Z–2(d)(2)(D)) with respect to such qualified opportunity zone unless substantially all of the use of such property, during substantially all of the holding period for such property, is in connection with a maritime industry, and
(II)
a trade or business shall not be treated as a qualified opportunity zone business (as defined in section 1400Z–2(d)(3)) with respect to such qualified opportunity zone unless substantially all of the operation of such trade or business is in connection with a maritime industry.
(ii)
Maritime industry
For purposes of this subsection—
(I)
In general
The term  maritime industry  means any industry which is determined by the Secretary to support, directly or indirectly, the construction, reconstruction, repair, rehabilitation, or refurbishment of shipyards, ports, harbor facilities, or vessels.
(II)
Certain industries included
Except as otherwise provided by the Secretary, any industry assigned one of the following codes under the 2022 North American Industry Classification System shall be treated as a maritime industry:
(aa)
332 (Fabricated Metal Product Manufacturing).
(bb)
3366 (Ship and Boat Building).
(cc)
336611 (Ship Building and Repairing).
(dd)
333923 (Overhead Traveling Crane, Hoist, and Monorail System Manufacturing).
(ee)
334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing).
(ff)
4883 (Support Activities for Water Transportation).
(gg)
483111 (Deep Sea Freight Transportation).
(hh)
483113 (Coastal and Great Lakes Freight Transportation).
(ii)
483211 (Inland Water Freight Transportation).
(jj)
541330 (Engineering Services).
(B)
Limitations
(i)
In general
The number of population census tracts that are maritime prosperity zones that may be designated as qualified opportunity zones under paragraph (2) at any time may not exceed 100.
(ii)
Limitation on number of low-income community designations unchanged
A population census tract that is a maritime prosperity zone that is designated as a qualified opportunity zone under paragraph (2) shall not be taken into account in determining the limitation under subsection (d).
 .
(b)
Basis increase for investments in qualified maritime prosperity funds
Section 1400Z–2(b)(2) of such Code (as amended by section 70421(c)(2) of  Public Law 119–21 ) is amended—
(1)
in subparagraph (B)(iii)(I), by inserting  or a qualified maritime prosperity fund  after  qualified rural opportunity fund , and
(2)
by adding at the end the following new subparagraph:
(D)
Qualified maritime prosperity fund
For purposes of subparagraph (B)(iii), the term  qualified maritime prosperity fund  has the same meaning given the term  qualified rural opportunity fund , determined by substituting  maritime prosperity zone (as defined in section 1400Z–1(f)(3)(A))  for  qualified opportunity zone comprised entirely of a rural area  each place it appears.
  .
(c)
Conforming amendments
(1)
Section 1400Z–1(d)(1) of such Code is amended by striking  under this section  and inserting  under subsection (b) .
(2)
Section 1400Z–1(e)(2) of such Code is amended—
(A)
by striking  under this section  and inserting  under subsection (b) or (f)(2) , and
(B)
by striking  subsection (b)(1)(B)  and inserting  subsection (b)(1)(B) or (f)(2)(B) (as the case may be) .
(d)
Effective date
The amendments made by this section shall take effect beginning after December 31, 2026.
(e)
Deadline To begin nomination and notification process
Not later than July 1, 2027, the Secretary of Commerce shall begin the nomination and notification process referred to in clauses (i) and (ii) of  section 1400Z–1(f)(2)(A)  of the Internal Revenue Code of 1986 (as added by subsection (a)).