Short title

This Act may be cited as the

Port Crane Tax Credit Act of 2025

Port crane manufacturing facility investment credit

(a)

In general

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:

48F.

Port crane manufacturing facility investment credit

(a)

Credit allowed

For purposes of section 46, the port crane investment credit for any taxable year is an amount equal 25 percent of the qualified investment for such taxable year with respect to any port crane manufacturing facility of an eligible taxpayer. (b)

Qualified investment

(1)

In general

For purposes of subsection (a), the qualified investment with respect to any port crane manufacturing facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified port crane manufacturing facility. (2)

Qualified property

(A)

In general

For purposes of this subsection, the term qualified property means property— (i)which is tangible property, (ii)with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (iii)which is— (I)constructed, reconstructed, or erected by the taxpayer, or (II)acquired by the taxpayer if the original use of such property commences with the taxpayer, and (iv)which is integral to the operation of the qualified port crane manufacturing facility. (B)

Buildings and structural components

(i)

In general

The term qualified property includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A). (ii)

Exception

Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing. (3)

Qualified port crane manufacturing facility

For purposes of this section, the term qualified port crane manufacturing facility means a facility— (A)which is located in the United States, including a territory or possession of the United States, and (B)the primary purpose of which is— (i)the construction or repair of port cranes, (ii)the manufacture of components which are critical, as determined by the Secretary, to the operation of port cranes, or (iii)the manufacture of equipment which is used to produce or repair port cranes. (4)

Definitions

For purposes of this section— (A)

Port crane

The term port crane means— (i)a gantry crane which is— (I)installed at a port terminal, and (II)designed for the loading and unloading of cargo containers or bulk goods between vessels and shore-side transportation, (ii)a mobile harbor crane, or (iii)a ship to shore gantry crane which is— (I)configured as a steel superstructure, and (II)designed to unload intermodal containers from vessels by using coupling devices. (B)

Component material

The term component material means any component within or comprising a port crane, including the steel frame, cabling, brakes, computer equipment, and modems. (5)

Progress expenditure rules

Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (c)

Elective payment

(1)

In general

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. (2)

Special rules

Rules similar to the rules of section 48D(d)(2) shall apply with respect to an election under paragraph (1). (d)

Termination of credit

The credit allowed under this section shall not apply to property placed in service after December 31, 2035.

(b)

Credit eligible for elective payment

Section 6417(b) of such Code is amended by adding at the end the following new paragraph:

(13)The port crane investment credit determined under section 48F.

(c)

Credit transferable

Section 6418(f)(1)(A) of such Code is amended by adding at the end the following new clause:

(xii)The port crane investment credit determined under section 48F.

(d)

Conforming amendments

(1)Section 46 of such Code is amended by striking and at 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:

(8)The port crane investment credit.

(2) 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:

(ix) the basis of any property which is part of a port crane manufacturing facility under section 48F.

(3)Section 50(a)(2)(E) is amended by striking or 48E(e) and inserting 48E(e), or 48F(c)(5). (4)The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48E the following new item:

Sec. 48F. Port crane investment credit.

(e)

Effective date

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.

Port crane production credit

(a)

In general

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:

45BB.

Port crane production credit

(a)

In general

(1)

Allowance of credit

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— (A)produced by the taxpayer in the United States, and (B)during the taxable year, sold by such taxpayer to an unrelated person. (2)

Credit amount

The amount determined under this paragraph is— (A)40 percent of the sale price of a port crane that is not described in subparagraph (B), and (B)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. (b)

Credit phase-Out

(1)

In general

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— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase out percentage under paragraph (2). (2)

Phase-out percentage

The phase-out percentage under this paragraph is equal to— (A) in the case of any port crane produced in calendar year 2035, 25 percent, (B) in the case of any port crane produced in calendar year 2036, 15 percent, and (C) in the case of any port crane produced after calendar year 2036, 0 percent. (c)

Port crane, component materials

The terms port crane and component materials have the respective meanings given such terms in section 45F(b)(4).

(b)

Credit allowed as part of general business credit

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:

(42)the port crane production credit determined under section 45BB.

(c)

Credit eligible for elective payment

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:

(14)The port crane production credit determined under section 45BB.

(d)

Credit transferable

Section 6418(f)(1)(A) of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause:

(xiii)The port crane production credit determined under section 45BB.

(e)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

Sec. 45BB. Port crane production credit.

(f)

Effective date

The amendments made by this section shall apply to property produced in taxable years beginning after the date of the enactment of this Act.