H.R. 3151

SHIPS for America Act of 2025

Sponsor: Trent Kelly

145 cosponsors
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I Oversight and accountability

II Maritime Security Trust Fund

Sec. 202. Regular tonnage taxes

(a) Rate updates. Section 60301 of title 46, United States Code, is amended—

(1) in subsection (a), by striking , for fiscal years 2006 through 2010, and 2 cents per ton not to exceed a total of 10 cents per ton per year, for each fiscal year thereafter; and

(2) in subsection (b), by striking , for fiscal years 2006 through 2010, and 6 cents per ton, not to exceed a total of 30 cents per ton per year, for each fiscal year thereafter.

(b) Foreign shipyard of concern

(1) Definition. The term foreign shipyard of concern means—

(A) a shipyard owned by a firm owned or controlled by the government of a foreign country of concern or a foreign entity of concern, that has the capacity to produce both military and commercial vessels; and

(B) a foreign shipyard designated under paragraph (2).

(2) Designation

(A) In General. Beginning after October 1, 2027, the Maritime Security Advisor, in consultation with the Maritime Security Board, shall designate certain foreign shipyards that pose a threat to the national security or economic security of the United States as foreign shipyards of concern, in accordance with this paragraph.

(B) Notice and comment. A proposed designation under subparagraph (A) shall be subject to notice and comment in the Federal Register.

(C) Annual revisions. The list of shipyards designated under this paragraph shall be revised, and new shipyards may be designated, not more frequently than once a year.

(c) Penalty rates; inflation. Section 60301 of title 46, United States Code, is further amended—

(1) by redesignating subsection (c) as subsection (e); and

(2) by inserting after subsection (b) the following:

Text this section adds to the law

(c) Penalty rate

(1) In General. In accordance with paragraph (2), and in addition to the tax imposed on a vessel under subsection (b), a penalty tax with no annual limit is imposed on a vessel subject to the tax imposed under subsection (b), at a rate of—

(A) $5 per ton for a vessel that—

(i) is owned or operated by a foreign entity of concern;

(ii) is a vessel registered under a registry of a foreign country of concern;

(iii) was a vessel registered under a registry of a foreign country of concern at any time during the 3 years preceding the date of the determination of the application of subsection (a) or (b); or

(iv) is owned or operated by an entity, with respect to which—

(I) an amount equal to 50 percent or greater of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or

(II) an amount equal to 50 percent or greater of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern;

(B) $3.50 per ton for a vessel that is owned or operated by an entity, with respect to which—

(i) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or

(ii) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern;

(C) $1.25 per ton for a vessel that is owned or operated by an entity with a fleet of vessels, of which an amount equal to 50 percent or more of the number of such vessels were constructed or underwent any repairs (excluding necessary repairs as described in paragraph (1) of section 466(d) of the Tariff Act of 1930 (19 U.S.C. 1466(d)(1))) in a shipyard of concern at any time during the 3 years preceding the date of the determination of the application of subsection (b).

(2) Highest applicable rate. A vessel with respect to which the descriptions in 2 or more subparagraphs in paragraph (1) apply, shall be subject to the highest applicable rate described in that paragraph.

(3) Definitions. In this subsection—

(A) the terms foreign country of concern and foreign entity of concern have the meanings given those terms in section 4 of the SHIPS for America Act of 2025; and

(B) the term foreign shipyard of concern has the meaning give that term in section 202 of that Act.

(d) Index for inflation. The taxes imposed under this section shall be annually increased to account for inflation.

III Sealift capability

IV Vessels of the United States in international commerce

A Strategic sealift programs

B Cargo preference

C Regulatory reform

V Shipbuilding

A Shipbuilding financial incentives

B Department of Defense Programs

C Shipbuilding innovation and infrastructure

VI Workforce Development

A Workforce incentives

B Workforce Pipeline

C United States Merchant Marine Academy and State maritime academies

D Maritime Credentialing Modernization

VII Amendments to the internal revenue code of 1986