Applicant must execute a Capital Construction Fund Agreement prior to final due date for filing of Federal tax return to receive tax deferment for a given tax year. From 30 to 90 days. See Award Procedure section of this program. In addition, these vessels must be documented under the laws of the United States and operated in the United States foreign, Great Lakes or noncontiguous domestic trade. The definition of noncontiguous domestic trade includes trade between fixed drilling and production platforms located on the Outer Continental Shelf of the United States at a distance more than three miles from shore and the U.S. mainland.
Applicant receives tax benefits for depositing assets in accordance with the program.
See Maritime Administration Regional Offices listed in Appendix IV of the Catalog. Each agreement provides for a minimum deposit over a 3-year period to insure that the party is making a sufficient commitment to continue the agreement. Depends upon the individual program agreed to between the Maritime Administration and the applicant. The assistance provided is not through payment of appropriated funds, but rather allows the fund holder to defer a portion of tax monies that would otherwise be paid to the U.S. Government during the tax year. The extension of tax deferral privileges encourages the accomplishment of the program objective by allowing the fund holder to accumulate and use otherwise taxable earnings for the purposes of acquiring, constructing or reconstructing vessels built and documented in the United States and operated in the United States foreign, Great Lakes or noncontiguous domestic trade and in the fisheries.