Competitive Shipping and Shipbuilding Act of 1985

Competitive Shipping and Shipbuilding Act of 1985 - Title I: Competitive Shipping and Shipbuilding - Requires each importer or exporter of bulk cargoes to transport at least five percent of such cargoes in United States-flag ships in the calendar year following enactment of this title.

Requires annual one percent increases until the percentage of bulk cargoes carried on U.S.-flag ships reaches 20 percent.

Authorizes the Secretary of Transportation to provide relief from the requirements of this Act upon a finding that U.S.-flag ships are not available within guideline rates. Sets forth factors which the Secretary shall consider in determining the extent of relief granted.

Requires the Secretary to establish and publish guideline rates for the carriage of bulk cargoes subject to this Act. Requires the Secretary to assure that such rates take into account certain objectives.

Requires the Secretary, in order to establish guideline rates, to estimate the current cost of operating U.S.-flag ships in the foreign bulk trades of the United States and of constructing such ships. Requires such cost estimates to be published within six months after enactment of this Act. Requires such estimates to be revised annually.

Requires that such rates: (1) be reviewed and adjusted at least annually; (2) not reflect costs greater than the estimated current costs; and (3) be the maximum rates which may be charged for the charter of U.S.-flag ships for the transportation of bulk cargoes governed by this Act.

Requires the Secretary to establish and publish interim guideline rates in the first calendar year following the enactment of this Act. Sets forth factors to be taken into account in determining such rates.

Requires anyone engaged in importing or exporting bulk commodities in U.S. foreign commerce to report to the Secretary on the percentages of such person's exports and imports carried on U.S.-flag ships. Requires anyone who fails to transport the required percentage of U.S. bulk cargoes to use exclusively U.S.-flag ships until the deficiency has been recouped, unless relief has been granted.

Establishes civil penalties for violations of this Act. Sets forth procedures for judicial review of violations of this Act.

Title II: Income Tax Credit for Increased Shipping Costs - United States-Flag Ship Use Incentive Tax Act of 1985 - Amends the Internal Revenue Code to allow a tax credit for 100 percent of the qualified increased shipping costs where importers and exporters use U.S.-flag ships. Provides for the carryover of such credit for up to three years.