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KPMG article: U.S. tax provisions in the SHIPS Act of 2025

Proposed changes to the U.S. law as it applies to the shipbuilding, shipping, and maritime industries

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July 15, 2025

President Trump in April 2025 signed Executive Order 14269, titled “Restoring America’s Maritime Dominance” (the Shipping EO), which proclaims that the policy of the United States is “to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.”

On April 30, 2025, Sens. Mark Kelly, D-Ariz., and Todd Young, R-Ind., and Reps. John Garamendi, D-Calif., and Trent Kelly, R-Miss., introduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 (the SHIPS Act of 2025), proposing large changes to the U.S. law as it applies to the shipbuilding, shipping, and maritime industries and proposing to codify many of the proposals contained in the Shipping EO. The proposed legislation also contains an entire title providing amendments to the Internal Revenue Code that are designed to provide additional economic incentives to revitalize the domestic shipbuilding and shipping industries. Now that the budget reconciliation legislation has passed, the bipartisan shipping proposal could be the next large item on the legislative agenda.

Read a July 2025 article* prepared by a KPMG LLP tax professional that discusses some of the relevant history that informs the Shipping EO and the SHIPS Act of 2025 and examines in detail the U.S. tax provisions in the SHIPS Act of 2025.

*This article originally appeared in Tax Notes Federal (July 7, 2025) and is provided with permission.

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