HR 4589
Port Crane Tax Credit Act of 2025
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Bill overview
The Port Crane Tax Credit Act of 2025 establishes two new tax credits to encourage domestic manufacturing of port cranes. The first, a port crane investment credit, provides a 25% tax credit for investments in facilities that construct, repair, or manufacture components for port cranes. The second, a port crane production credit, offers a credit based on the sale price of port cranes produced domestically, with a phase-out schedule over time. Both credits are designed to incentivize U.S. production of these critical maritime equipment.
Key provisions
- Provides a 25% tax credit for investments in port crane manufacturing facilities.
- Defines ‘port crane’ to include gantry cranes, mobile harbor cranes, and ship-to-shore gantry cranes.
- Establishes a port crane production credit based on the sale price of domestically produced cranes.
- Includes a phase-out schedule for the production credit, reducing the credit percentage over time.
- Allows for elective payment of the tax credits.
- Specifies that the port crane investment credit is transferable.
- Defines ‘component material’ as parts within or comprising a port crane.
- Sets a termination date for the port crane investment credit at the end of 2035.
Who is affected
- Manufacturers of port cranes
- Businesses investing in port crane manufacturing facilities
- Taxpayers producing and selling port cranes
- The shipping and logistics industry
- The United States economy
Notable changes
Sponsors
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Primary sponsor
Cosponsors
Randy K. Sr. Weber
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119th CONGRESS — 1st Session
H. R. 4589
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to establish tax credits to incentivize the domestic production of port cranes, and for other purposes.
This Act may be cited as the Port Crane Tax Credit Act of 2025
.
Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:
qualified propertymeans property—
which is tangible property,
which is—
constructed, reconstructed, or erected by the taxpayer, or
acquired by the taxpayer if the original use of such property commences with the taxpayer, and
which is integral to the operation of the qualified port crane manufacturing facility.
qualified propertyincludes any building or its structural components which otherwise satisfy the requirements under subparagraph (A).
For purposes of this section, the term qualified port crane manufacturing facility
means a facility—
which is located in the United States, including a territory or possession of the United States, and
the primary purpose of which is—
the construction or repair of port cranes,
the manufacture of components which are critical, as determined by the Secretary, to the operation of port cranes, or
the manufacture of equipment which is used to produce or repair port cranes.
For purposes of this section—
The term port crane
means—
installed at a port terminal, and
designed for the loading and unloading of cargo containers or bulk goods between vessels and shore-side transportation,
a mobile harbor crane, or
a ship to shore gantry crane which is—
configured as a steel superstructure, and
designed to unload intermodal containers from vessels by using coupling devices.
The term component material
means any component within or comprising a port crane, including the steel frame, cabling, brakes, computer equipment, and modems.
Except as otherwise provided in paragraph (2)(A), in the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this subsection with respect to the credit determined under subsection (a), such taxpayer shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.
Rules similar to the rules of section 48D(d)(2) shall apply with respect to an election under paragraph (1).
The credit allowed under this section shall not apply to property placed in service after December 31, 2035.
Section 6417(b) of such Code is amended by adding at the end the following new paragraph:
Section 6418(f)(1)(A) of such Code is amended by adding at the end the following new clause:
andat the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting
, and, and by adding at the end the following new paragraph:
Section 49(a)(1)(C) of such Code is amended by striking and
at the end of clause (vii), by striking the period at the end of clause (viii) and inserting , and
, and by adding at the end the following new clause:
Section 50(a)(2)(E) is amended by striking or 48E(e)
and inserting 48E(e), or 48F(c)(5)
.
The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 45AA the following new section:
For purposes of section 38, the port crane production credit for any taxable year is an amount equal to the sum of the credit amounts determined under paragraph (2) with respect to each port crane which is—
produced by the taxpayer in the United States, and
during the taxable year, sold by such taxpayer to an unrelated person.
The amount determined under this paragraph is—
40 percent of the sale price of a port crane that is not described in subparagraph (B), and
60 percent of the sale price of a port crane with respect to which 90 percent of the component materials are produced in the United States.
The amount of the credit under subsection (a) for any port crane produced during a calendar year described in paragraph (2) shall be equal to the product of—
the phase out percentage under paragraph (2).
The phase-out percentage under this paragraph is equal to—
in the case of any port crane produced in calendar year 2035, 25 percent,
in the case of any port crane produced in calendar year 2036, 15 percent, and
in the case of any port crane produced after calendar year 2036, 0 percent.
The terms port crane
and component materials
have the respective meanings given such terms in section 45F(b)(4).
Section 38(b) of such Code is amended by striking plus
at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus
, and by adding at the end the following new paragraph:
Section 6417(b) of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:
The amendments made by this section shall apply to property produced in taxable years beginning after the date of the enactment of this Act.