The publication is reproduced in full below:
CAPITAL CONSTRUCTION FUNDS FOR JONES ACT VESSELS
______
HON. JOHN GARAMENDI
of california
in the house of representatives
Tuesday, March 1, 2022
Mr. GARAMENDI. Madam Speaker, today I introduce legislation to allow operators of Jones Act-compliant passenger ferries to establish Capital Construction Funds. Only car ferries are currently eligible for this special, tax-exempt domestic shipbuilding program administered by the Maritime Administration (MARAD).
Federally regulated Capital Construction Funds allow operators of US-
flagged vessels to legally forgo paying federal business taxes pertaining to such vessels, provided all that forgone tax payment is reinvested in constructing new US-flagged vessels in American shipyards.
Current law only allows operators of cargo and fishing vessels to establish Capital Construction Funds for such vessels. Car ferries are only eligible because they are treated as ``cargo vessels'' for the purposes of the program, not ferries. Under my bill, all ferries and similar vessels with 50-plus passenger capacity would be eligible to establish Capital Construction Funds.
Through my tenure in the Congress, I have worked to increase federal funding for expanded passenger ferry service. Regrettably, Congress has historically underfunded the Federal Highway Administration's formula program and the Federal Transit Administration's competitive grant program for ferries, ferry terminals, and related infrastructure. Privately operated passenger ferries remain ineligible under both U.S. Department of Transportation programs.
Both public and private operators are working to expand service in the San Francisco Bay Area. My legislation is intended to support proposed service expansion by private ferry operators in the Bay Area and nationwide, at no cost to American taxpayers. Many Bay Area ferry operators are also considering replacing their existing fleets with new renewable energy-powered ferries, like hydrogen fuel cells. Those ferries can and should be built in American shipyards by skilled workers.
Madam Speaker, I plan to make this legislation a priority in the forthcoming Coast Guard Authorization Act for fiscal years 2022 and 2023.
____________________
SOURCE: Congressional Record Vol. 168, No. 37
The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
House Representatives' salaries are historically higher than the median US income.
Alerts Sign-up