Building Ships in America Act of 2025 | ChamberLight

IN COMMITTEE· 119TH CONGRESS

Senate BillS 1536Taxation

Building Ships in America Act of 2025

INTRO APR 30· LAST ACTION APR 30

READING

29MIN

COSPONSORS

4BIPARTISAN

READER REACTIONS0 TOTAL

NO VOTES YET · BE THE FIRST

Introduced only

LEGISLATIVE PROGRESS

STEP 2 / 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

WHAT THE BILL DOES

AI-written

If this bill becomes law, it could significantly boost the U.S. shipbuilding industry, leading to more jobs and economic activity in coastal communities. It aims to strengthen the country's merchant marine fleet, which is vital for transporting goods during peacetime and supporting military operations during crises, reducing reliance on foreign-flagged vessels and international shipyards.

At a time when global supply chains face disruptions and geopolitical tensions highlight the need for national self-reliance, this bill directly addresses concerns about America's maritime industrial base. If it passes, it could reverse decades of decline in U.S. shipbuilding capacity. If it doesn't, the existing economic disincentives for domestic shipbuilding would likely continue, leaving the U.S. more dependent on foreign entities for critical shipping and naval support capabilities.

KEY PROVISIONS

5AI-extracted

PROVISION 01

Establishes a United States Vessel Investment Credit, offering a tax credit of up to 40% for constructing, repowering, or reconstructing qualifying cargo vessels in U.S. shipyards.

This provision provides a direct financial incentive for companies to invest in American shipbuilding, aiming to revitalize the domestic industry.

PROVISION 02

Defines strict requirements for a vessel to qualify for the credit, including being a U.S.-flagged cargo vessel, operating in foreign trade, committing to emergency preparedness agreements, and having no links to "foreign entities of concern."

These criteria ensure that the tax benefits support vessels critical for U.S. economic and national security, while preventing potential adversaries from benefiting.

PROVISION 03

Adds bonus credit percentages if the vessel obtains protection and indemnity insurance from U.S.-domiciled companies and is classified by a U.S.-headquartered society.

This incentivizes the use of other U.S. maritime services, strengthening the broader American maritime industry beyond just shipbuilding.

PROVISION 04

Includes provisions, as indicated by the table of contents, for a tax credit for the construction of shipyard facilities.

This directly supports the development and modernization of the physical infrastructure necessary to expand U.S. shipbuilding capacity.

PROVISION 05

Proposes "Maritime fuel tax parity," suggesting adjustments to fuel taxes for maritime operations.

This could reduce operational costs for U.S. shipping companies, potentially making them more competitive in the global market.

SPONSORSHIP

1 + 4

COSPONSOR BREAKDOWNBIPARTISAN · 100%

DEM 2 REP 2 IND 0

ACTION TIMELINE

2 EVENTS

APR 30

Introduced in Senate

INTROREFERRAL

APR 30

Read twice and referred to the Committee on Finance.

INTROREFERRAL

BILL INFO

TypeSenate Bill

NumberS 1536

Congress119th

StatusIn Committee

IntroducedApr 30, 2025

Last actionApr 30, 2025

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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED APR 30, 2025

Senate BillS 1536Taxation

Building Ships in America Act of 2025

INTRODUCED APR 30, 2025· LAST ACTION APR 30, 2025

PASSAGE CHANCES

—%

READING

29 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Establishes a United States Vessel Investment Credit, offering a tax credit of up to 40% for constructing, repowering, or reconstructing qualifying cargo vessels in U.S. shipyards.

This provision provides a direct financial incentive for companies to invest in American shipbuilding, aiming to revitalize the domestic industry.

high

These criteria ensure that the tax benefits support vessels critical for U.S. economic and national security, while preventing potential adversaries from benefiting.

med

Adds bonus credit percentages if the vessel obtains protection and indemnity insurance from U.S.-domiciled companies and is classified by a U.S.-headquartered society.

This incentivizes the use of other U.S. maritime services, strengthening the broader American maritime industry beyond just shipbuilding.

med

Includes provisions, as indicated by the table of contents, for a tax credit for the construction of shipyard facilities.

This directly supports the development and modernization of the physical infrastructure necessary to expand U.S. shipbuilding capacity.

low

Proposes "Maritime fuel tax parity," suggesting adjustments to fuel taxes for maritime operations.

This could reduce operational costs for U.S. shipping companies, potentially making them more competitive in the global market.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

January 1, 2033

Construction of a qualified vessel must begin before this date to be eligible for the credit.

Not less than 10 years

A qualified vessel, under agreement with the Maritime Administrator, must operate as a vessel of the United States for at least this period.

GLOSSARY

AI-written

Internal Revenue Code of 1986: The main collection of federal tax laws in the United States, which the bill proposes to change.
Tax Credit: A direct reduction in the amount of tax a person or company owes, rather than a reduction in their taxable income.
United States Flag Vessel: A ship that is registered in the U.S., flies the U.S. flag, is owned by U.S. citizens or companies, and must employ U.S. citizens as crew.
Repowering: The process of replacing or significantly upgrading a vessel's main engine(s).
Foreign Entity of Concern: An entity (like a company, organization, or individual) that is owned by, controlled by, or subject to the influence of a foreign government or political party that is considered a threat to U.S. national security or foreign policy.
Maritime Administrator: The head of the U.S. Maritime Administration (MARAD), an agency that promotes and maintains the U.S. merchant marine.
American Bureau of Shipping: A U.S.-based organization that sets technical standards and certifies the safety and quality of ship design, construction, and maintenance.

ACTION TIMELINE

2 EVENTS

APR 30, 25

Introduced in Senate

INTROREFERRAL

APR 30, 25

Read twice and referred to the Committee on Finance.

INTROREFERRAL

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Finance CommitteeReferred

Apr 30, 2025

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Building Ships in America Act of 2025

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

READER REACTIONS

Discussion

Building Ships in America Act of 2025

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

GLOSSARY

ACTION TIMELINE

SPONSORS

READER REACTIONS

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