“To amend the Internal Revenue Code of 1986 to establish tax credits to incentivize the domestic production of port cranes, and for other purposes.”
No CRS summary available for this bill.
This section establishes a new port crane manufacturing facility investment tax credit under section 48F equal to 25% of the basis of qualified property (i.e., depreciable tangible property integral to a qualified facility, including certain buildings) placed in service in taxable years beginning after enactment through December 31, 2035. A qualified facility is one located in the United States whose primary purpose is constructing or repairing port cranes (i.e., gantry cranes for cargo containers or bulk goods, mobile harbor cranes, or ship-to-shore gantry cranes), manufacturing critical components (e.g., steel frames, cabling), or producing related equipment; the credit applies progress expenditure rules similar to prior law and is eligible for elective payment under section 6417 or transfer under section 6418. (Thus, it incentivizes domestic investment in port infrastructure manufacturing to support supply chain resilience.)
This section establishes a new port crane production tax credit under new IRC §45BB for taxpayers that produce port cranes (as defined in IRC §45F(b)(4)) in the United States and sell them to unrelated persons, equal to 40% of the sales price (60% if 90% of component materials are U.S.-produced). The credit phases out by reducing the otherwise allowable amount to 75% (25% phase-out) for cranes produced in 2035, 85% (15% phase-out) in 2036, and 100% (full phase-out) thereafter. The credit is included in the general business credit under IRC §38(b), eligible for elective payment under IRC §6417(b), and transferable under IRC §6418(f), with the amendments applying to port cranes produced in taxable years beginning after enactment.