New Tax Credits Offer 60% Incentive to Manufacture Port Cranes in the U.S., Phasing Out by 2037

This bill, the Port Crane Tax Credit Act of 2025, is essentially a big, flashing 'Made in America' sign for the heavy machinery used to run our ports. It introduces two massive, temporary tax incentives designed to get companies building port cranes—the massive gantry cranes that load and unload cargo containers—right here in the U.S. The goal is clear: secure the supply chain for critical infrastructure by making domestic manufacturing highly profitable. These new tax breaks are structured to be extremely flexible for businesses, allowing them to either get the credit as a direct cash payment or sell the credit to another company, making them instantly valuable.

Building the Factory: The 25% Investment Credit

Section 2 sets up the first incentive: a 25% investment tax credit for putting money into a new or expanded facility that manufactures port cranes or their critical components. Think of this as a rebate on the cost of construction. If a company spends $100 million building a new factory in South Carolina to assemble these massive cranes, they can claim $25 million back as a tax credit. This credit is available for property put into service through the end of 2035. The catch? The credit only applies to the manufacturing part of the building—no credit for the offices or administrative wings. This is a direct play to boost capital investment and secure the physical infrastructure needed for this manufacturing base.

The Production Bonus: 60% for Domestic Content

Section 3 introduces the second, and arguably more powerful, incentive: the Port Crane Production Credit. This credit is based on the sale price of the finished crane, and it’s tiered based on how much of the crane is sourced domestically. If a manufacturer sells a crane, they get a credit equal to 40 percent of the sale price. However, if they can prove that 90 percent of the component materials used in that crane were also produced in the U.S., that credit jumps to a whopping 60 percent of the sale price. If a crane sells for $10 million, that’s the difference between a $4 million tax credit and a $6 million tax credit.

This aggressive 60% incentive is designed to pull the entire supply chain—from the steel frame to the specialized motors and computer equipment—onto U.S. soil. For regular folks, this means more domestic jobs in heavy industry and a more secure supply chain for the goods that come into our ports. However, this production credit is temporary: it starts phasing out in 2035 and disappears completely after 2036. This creates a powerful, time-limited incentive for companies to move fast.

The Real-World Implications and the Fine Print

For the companies involved, the elective payment and transferability options are huge. Most new manufacturing facilities don't make enough profit initially to use a massive tax credit right away. By allowing them to treat the credit as a direct payment (cash back) or sell it to a profitable company that needs the tax break, the bill ensures the incentive is immediately valuable, accelerating investment decisions. This is smart policy design that gets money moving faster.

The main challenge here is defining what counts. Section 2 grants the Secretary authority to determine which parts are “critical” to a port crane’s function. This is a common but crucial point of vagueness. The interpretation of “critical components” could make or break which domestic parts suppliers qualify for the investment credit. Furthermore, while these credits are great for the manufacturers, they represent a significant cost to the federal government—tax expenditures that will be borne by taxpayers generally. We are effectively subsidizing the re-shoring of this specific manufacturing sector, betting that the long-term benefits of supply chain security outweigh the immediate costs.