306 
is further amended in the item relating to section 
7310 by striking ‘‘seamen’’ and inserting ‘‘sea-
farers’’. 
(f) ABLE SEAFARERS—SAIL.— 
(1) IN GENERAL.—The section heading for sec-
tion 7311 of title 46, United States Code, is amend-
ed by striking ‘‘seamen’’ and inserting ‘‘sea-
farers’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 73 of title 46, United States Code, 
is further amended in the item relating to section 
7311 by striking ‘‘seamen’’ and inserting ‘‘sea-
farers’’. 
(g) ABLE SEAMEN—FISHING INDUSTRY.— 
(1) IN GENERAL.—The section heading for sec-
tion 7311a of title 46, United States Code, is 
amended by striking ‘‘seamen’’ and inserting 
‘‘seafarers’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 73 of title 46, United States Code, 
is further amended in the item relating to section 
7311a by striking ‘‘seamen’’ and inserting ‘‘sea-
farers’’. 
(h) PARTS E AND F.—Parts E and F of subtitle II 
of title 46, United States Code, is amended— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00306
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
307 
(1) by striking ‘‘seaman’’ and inserting ‘‘sea-
farer’’ each place it appears; and 
(2) by striking ‘‘seamen’’ and inserting ‘‘sea-
farers’’ each place it appears. 
(i) CLERICAL AMENDMENTS.—The table of sections 
for subtitle II of title 46, United States Code, is amended 
in the item relating to part E by striking ‘‘MERCHANT 
SEAMEN LICENSES, CERTIFICATES, AND DOCU-
MENTS’’ and inserting ‘‘MERCHANT MARINER CRE-
DENTIALS’’. 
SEC. 635. RENEWAL OF MERCHANT MARINER LICENSES 
AND DOCUMENTS. 
Section 7507 of title 46, United States Code, is 
amended by adding at the end the following: 
‘‘(d) RENEWAL.—With respect to any renewal of a 
valid merchant mariner credential issued under this part 
that is not an extension under subsection (a) or (b), the 
validity period of such credential shall begin the day after 
the expiration of the current credential.’’. 
SEC. 636. MERCHANT SEAMEN LICENSES, CERTIFICATES, 
AND DOCUMENTS; MANNING OF VESSELS. 
(a) CITIZENSHIP OR NONCITIZEN NATIONALITY.— 
(1) IN
GENERAL.—Section 7102 of title 46, 
United States Code, is amended— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00307
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
308 
(A) in the section heading, by inserting 
‘‘or noncitizen nationality’’ after ‘‘Citi-
zenship’’; and 
(B) by inserting ‘‘or noncitizen nationals 
(as such term is described in section 308 of the 
Immigration and Nationality Act (8 U.S.C. 
1408))’’ after ‘‘citizens of the United States’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 71 of title 46, United States Code, 
is amended by striking the item relating to section 
7102 and inserting the following: 
‘‘7102. Citizenship or noncitizen nationality.’’. 
(b) CITIZENSHIP OR NONCITIZEN NATIONALITY NO-
TATION ON MERCHANT MARINERS’ DOCUMENTS.— 
(1) IN
GENERAL.—Section 7304 of title 46, 
United States Code, is amended— 
(A) in the section heading, by inserting 
‘‘or noncitizen nationality’’ after ‘‘Citi-
zenship’’; and 
(B) by inserting ‘‘or noncitizen national 
(as such term is described in section 308 of the 
Immigration and Nationality Act (8 U.S.C. 
1408))’’ after ‘‘citizen of the United States’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 73 of title 46, United States Code, 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
309 
is amended by striking the item relating to section 
7304 and inserting the following: 
‘‘7304. Citizenship or noncitizen nationality notation on merchant mariners’ doc-
uments.’’. 
(c) CITIZENSHIP OR NONCITIZEN NATIONALITY.— 
(1) IN
GENERAL.—Section 8103 of title 46, 
United States Code, is amended— 
(A) in the section heading by inserting ‘‘or 
noncitizen nationality’’ after ‘‘Citizen-
ship’’; 
(B) in subsection (a), by inserting ‘‘or non-
citizen national’’ after ‘‘citizen of the United 
States’’; 
(C) in subsection (b)— 
(i) in paragraph (1)(A)(i), by insert-
ing ‘‘or noncitizen national’’ after ‘‘citizen 
of the United States’’; and 
(ii) in paragraph (3)— 
(I) in the matter preceding sub-
paragraph (A), by inserting ‘‘or non-
citizen nationality’’ after ‘‘citizen-
ship’’; and 
(II) in subparagraph (C), by in-
serting ‘‘or noncitizen nationals’’ after 
‘‘citizens of the United States’’; 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00309
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
310 
(D) in subsection (c), by inserting ‘‘or non-
citizen nationals’’ after ‘‘citizens of the United 
States’’; 
(E) in subsection (d)— 
(i) in paragraph (1), by inserting ‘‘or 
noncitizen nationals’’ after ‘‘citizens of the 
United States’’; and 
(ii) in paragraph (2), by inserting ‘‘or 
noncitizen national’’ after ‘‘citizen of the 
United States’’ each place it appears; 
(F) in subsection (e), in the matter pre-
ceding paragraph (1), by inserting ‘‘or noncit-
izen national’’ after ‘‘citizen of the United 
States’’ each place it appears; 
(G) in subsection (i)(1)(A), by inserting 
‘‘or noncitizen national’’ after ‘‘citizen of the 
United States’’; 
(H) in subsection (k)(1)(A), by inserting 
‘‘or noncitizen national’’ after ‘‘citizen of the 
United States’’; and 
(I) by adding at the end the following: 
‘‘(l) NONCITIZEN NATIONAL DEFINED.—In this sec-
tion, the term ‘noncitizen national’ means an individual 
described in section 308 of the Immigration and Nation-
ality Act (8 U.S.C. 1408).’’. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
311 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 81 of title 46, United States Code, 
is amended by striking the item relating to section 
8103 and inserting the following: 
‘‘8103. Citizenship or noncitizen nationality and Navy Reserve requirements.’’. 
(d) COMMAND OF DOCUMENTED VESSELS.—Section 
12131(a) of title 46, United States Code, is amended by 
inserting ‘‘or noncitizen national (as such term is de-
scribed in section 308 of the Immigration and Nationality 
Act (8 U.S.C. 1408))’’ after ‘‘citizen of the United 
States’’. 
(e) INVALIDATION
OF CERTIFICATES
OF DOCU-
MENTATION.—Section 12135(2) of title 46, United States 
Code, is amended by inserting ‘‘or noncitizen national (as 
such term is described in section 308 of the Immigration 
and Nationality Act (8 U.S.C. 1408))’’ after ‘‘citizen of 
the United States’’. 
SEC. 637. REACTIVATION OF EXPIRED LICENSE. 
(a) IN GENERAL.—Chapter 75 of subtitle II of part 
E, of title 46, United States Code, is amended by adding 
at the end the following: 
‘‘§ 7512. Authority for reactivation of United States 
Merchant Mariner credentials 
‘‘(a) LICENSES AND CERTIFICATES OF REGISTRY.— 
Notwithstanding sections 7106 and 7107, the Secretary 
of the department in which the Coast Guard is operating 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00311
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
312 
may renew for not more than 2 years an expired license 
or certificate of registry issued for an individual under 
chapter 71 if the Secretary determines that the renewal 
is in response to a national emergency declared by Con-
gress or declared under section 201 of the National Emer-
gencies Act (50 U.S.C. 1621), as deemed necessary by the 
Secretary. 
‘‘(b) MERCHANT MARINER DOCUMENTS.—Notwith-
standing section 7302(g), the Secretary may renew for not 
more than 2 years an expiring merchant mariner’s docu-
ment issued for an individual under chapter 73 if the Sec-
retary determines that the renewal is in response to a na-
tional emergency proclaimed by the President or declared 
by Congress, as deemed necessary by the Secretary. 
‘‘(c) MANNER OF RENEWAL.—Any renewal granted 
under this section may be granted to individual seamen 
or a specifically identified group of seamen.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 75 of title 46, United States Code, is amended 
by adding at the end the following: 
‘‘7512. Authority for reactivation of United States Merchant Mariner creden-
tials.’’. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00312
Fmt 6652
Sfmt 6211
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
313 
TITLE 
VII—AMENDMENTS 
TO 
THE 
INTERNAL 
REVENUE 
CODE OF 1986 
SEC. 701. ESTABLISHMENT OF THE MARITIME SECURITY 
TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 9512. MARITIME SECURITY TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Maritime Security Trust Fund’, con-
sisting of such amounts as may be— 
‘‘(1) appropriated to such Trust Fund as pro-
vided in this section, or 
‘‘(2) credited to such Trust Fund as provided 
in section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Trust Fund amounts equivalent 
to— 
‘‘(1) the taxes received in the Treasury under— 
‘‘(A) section 1352 (relating to alternative 
tax on qualifying shipping activities), 
‘‘(B) section 60301 of title 46, United 
States Code (relating to regular tonnage taxes), 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00313
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
314 
‘‘(C) section 60302 of title 46, United 
States Code (relating to special tonnage taxes), 
and 
‘‘(D) section 60303 of title 46, United 
States Code (relating to light money), 
‘‘(2) the amount received in the Treasury and 
attributable to revenue collected from duties im-
posed— 
‘‘(A) under section 466 of the Tariff Act 
of 1930 (19 U.S.C. 1466) (relating to equip-
ment and repair of vessels), 
‘‘(B) on and after July 6, 2018, with re-
spect to articles of the People’s Republic of 
China pursuant to section 301 of the Trade Act 
of 1974 (19 U.S.C. 2411), notice of which was 
published in the Federal Register on June 20, 
2018 (83 Fed. Reg. 28710), and 
‘‘(C) under section 60502 of title 46, 
United States Code (relating to discriminating 
duty on goods imported in foreign vessels or 
from contiguous countries), 
‘‘(3) any penalties paid with respect to a vessel 
pursuant to— 
‘‘(A) section 436 of the Tariff Act of 1930 
(19 U.S.C. 1436), 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00314
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
315 
‘‘(B) section 453 of the Tariff Act of 1930 
(19 U.S.C. 1453), 
‘‘(C) section 454 of the Tariff Act of 1930 
(19 U.S.C. 1454), 
‘‘(D) section 464 of the Tariff Act of 1930 
(19 U.S.C. 1464), 
‘‘(E) section 497 of the Tariff Act of 1930 
(19 U.S.C. 1497), 
‘‘(F) section 584 of the Tariff Act of 1930 
(19 U.S.C. 1584), 
‘‘(G) section 592 of the Tariff Act of 1930 
(19 U.S.C. 1592), 
‘‘(H) section 593A of the Tariff Act of 
1930 (19 U.S.C. 1593a), 
‘‘(I) section 7 of the Act of June 19, 1886 
(24 Stat. 81, chapter 421; 19 U.S.C. 1706a), 
‘‘(J) section 2107 of title 46, United 
States Code, 
‘‘(K) section 2302 of title 46, United 
States Code, 
‘‘(L) section 3318 of title 46, United 
States Code, 
‘‘(M) section 3718 of title 46, United 
States Code, 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00315
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
316 
‘‘(N) section 4106 of title 46, United 
States Code, 
‘‘(O) section 5116 of title 46, United 
States Code, 
‘‘(P) section 11303 of title 46, United 
States Code, 
‘‘(Q) section 11501 of title 46, United 
States Code, 
‘‘(R) section 12151 of title 46, United 
States Code, 
‘‘(S) section 12507 of title 46, United 
States Code, 
‘‘(T) section 14701 of title 46, United 
States Code, 
‘‘(U) section 30707 of title 46, United 
States Code, with respect to the portion of the 
fine that goes to the United States Government 
under subsection (c) of such section 30707, 
‘‘(V) section 31309 of title 46, United 
States Code, 
‘‘(W) section 31330 of title 46, United 
States Code, 
‘‘(X) section 41107 of title 46, United 
States Code, 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00316
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
317 
‘‘(Y) section 41108 of title 46, United 
States Code, 
‘‘(Z) section 42108 of title 46, United 
States Code, 
‘‘(AA) section 44104 of title 46, United 
States Code, 
‘‘(BB) section 70052 of title 46, United 
States Code, 
‘‘(CC) section 70119 of title 46, United 
States Code, 
‘‘(DD) section 70506 of title 46, United 
States Code, and 
‘‘(EE) section 80509 of title 46, United 
States Code, and 
‘‘(4) any revenue generated in connection with 
the seizure and forfeiture of a maritime vessel 
under— 
‘‘(A) section 3 of the Act of August 5, 
1935 (49 Stat. 518, chapter 438; 19 U.S.C. 
1703), 
‘‘(B) section 70052 of title 46, United 
States Code, and 
‘‘(C) section 70507 of title 46, United 
States Code. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
318 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Maritime Security Trust Fund shall be available, 
as provided by appropriation Acts, for making expendi-
tures before October 1, 2035, to meet those obligations 
of the United States heretofore and hereafter incurred 
which are authorized to be paid out of the Maritime Secu-
rity Trust Fund under the SHIPS for America Act of 
2024’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 9512. Maritime Security Trust Fund.’’. 
SEC. 702. UNITED STATES VESSEL INVESTMENT CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 48E the fol-
lowing new section: 
‘‘SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
United States Vessel Investment credit for any taxable 
year is an amount equal to the applicable percentage of 
any qualified investment for such taxable year with respect 
to any qualified vessel. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage with respect to 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
319 
any qualified vessel shall be an amount equal to the sum 
of— 
‘‘(1) 33 percent, plus 
‘‘(2) in the case of any qualified vessel for 
which the owner of such vessel will, as part of the 
agreement described in subsection (d)(1)(F) and for 
the duration of such agreement, obtain protection 
and indemnity insurance with respect to such vessel 
from an insurance company that is domiciled and 
headquartered in the United States and is an under-
writer that is approved by the Maritime Adminis-
trator, 5 percent, plus 
‘‘(3) in the case of any qualified vessel which is 
classified by and designed in accordance with the 
rules of the American Bureau of Shipping or any 
other classification society headquartered in the 
United States and recognized by the Secretary of 
the department in which the Coast Guard is oper-
ating in accordance with section 3316 of title 46, 
United States Code, 2 percent. 
‘‘(c) QUALIFIED INVESTMENT.—For purposes of sub-
section (a), the qualified investment with respect to any 
qualified vessel is equal to the amount paid or incurred 
by the taxpayer in connection with the construction, 
repowering, or reconstruction of such vessel— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
320 
‘‘(1) in a shipyard of the United States, and 
‘‘(2) by an entity which is not a foreign entity 
of concern. 
‘‘(d) QUALIFIED VESSEL.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified vessel’ means a cargo ves-
sel— 
‘‘(A) which is a United States flag vessel 
(as defined in section 1355), 
‘‘(B) which, in the case of any repowering 
or reconstruction of such vessel, was originally 
constructed in the United States, 
‘‘(C) which operates in providing transpor-
tation in the United States foreign trade (as 
such term is defined in section 1355(a)), 
‘‘(D) which is not a passenger vessel, as 
defined in section 2101 of title 46, United 
States Code, 
‘‘(E) which is— 
‘‘(i) a bulk carrier vessel, 
‘‘(ii) a tanker vessel, 
‘‘(iii) a roll-on/roll-off vessel, 
‘‘(iv) a container vessel, 
‘‘(v) a multi-purpose vessel, 
‘‘(vi) a cable vessel, 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
321 
‘‘(vii) a heavy-lift vessel, or 
‘‘(viii) any other type of vessel deter-
mined appropriate by the Maritime Admin-
istrator, in consultation with the Maritime 
Security Board, 
‘‘(F) which, pursuant to an agreement be-
tween the taxpayer and the Maritime Adminis-
trator, operates as a vessel of the United States 
for a period of not less than 10 years, and 
‘‘(G) the construction of which begins be-
fore January 1, 2032. 
‘‘(2) EXCLUSION RELATED TO FOREIGN ENTI-
TIES OF CONCERN.—The term ‘qualified vessel’ shall 
not include a vessel which— 
‘‘(A) is, or was previously, owned or oper-
ated by a foreign entity of concern, 
‘‘(B) was constructed, repowered, or recon-
structed in a shipyard which is owned or oper-
ated by a foreign entity of concern, or 
‘‘(C) was registered as a vessel of a foreign 
country of concern at any time prior to being 
placed in service by the taxpayer. 
‘‘(e) DEFINITIONS.— 
‘‘(1) VESSELS.—For purposes of subsection 
(d)(1)(E), any term used in such paragraph which 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
322 
is also used in chapter 536 of title 46, United States 
Code, shall have the same meaning as when used in 
such chapter. 
‘‘(2) FOREIGN ENTITY OF CONCERN; FOREIGN 
COUNTRY OF CONCERN.—For purposes of this sec-
tion, the terms ‘foreign entity of concern’ and ‘for-
eign country of concern’ have the same meaning 
given such terms under section 4 of the SHIPS for 
America Act of 2024. 
‘‘(f) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of sub-
section (a). 
‘‘(g) REGULATIONS.—The Secretary, in consultation 
with the Maritime Administrator, shall issue such regula-
tions or other guidance as may be necessary or appro-
priate to carry out the purposes of this section, including 
any regulations or guidance which may be necessary or 
appropriate to recapture the benefit of any credit deter-
mined under this section with respect to any qualified ves-
sel, or any increase in the applicable percentage under 
subsection (b) with respect to any qualified vessel, in the 
case of any taxpayer which fails to comply with the terms 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
323 
of the agreement described in subsection (d)(1)(F) with 
respect to such qualified vessel.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46 of the Internal Revenue Code of 
1986, as amended by section 13702(b)(1) of Public 
Law 117–169, is amended— 
(A) in paragraph (6), by striking ‘‘and’’ at 
the end, 
(B) in paragraph (7), by striking the pe-
riod at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(8) the United States Vessel Investment cred-
it.’’. 
(2) Section 49(a)(1)(C) of such Code, as 
amended by section 13702(b)(2) of Public Law 117– 
169, is amended— 
(A) in clause (vii), by striking ‘‘and’’ at the 
end, 
(B) in clause (viii), by striking the period 
at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(ix) with respect to any qualified ves-
sel (as defined in section 48F(d)), the por-
tion of the basis of such vessel attributable 
to amounts paid or incurred by the tax-
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00323
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
325 
spect to any investment credit property which is 
eligible for the United States Vessel Investment 
credit under section 48F(a), then the tax under 
this chapter for the taxable year in which such 
violation occurs shall be increased by 100 per-
cent of the aggregate decrease in the credits al-
lowed under section 38 for all prior taxable 
years which would have resulted solely from re-
ducing to zero any credit determined under sec-
tion 46 which is attributable to the United 
States Vessel Investment credit under section 
48F(a) with respect to such property. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply if the applicable taxpayer dem-
onstrates to the satisfaction of the Secretary 
and the Maritime Administrator that the tax-
payer is in compliance with the agreement de-
scribed in section 48F(d)(1)(F) within 30 days 
of a determination and notice by the Secretary. 
‘‘(C) REGULATIONS AND GUIDANCE.—The 
Secretary shall issue such regulations or other 
guidance as the Secretary determines necessary 
or appropriate to carry out the purposes of this 
paragraph, including regulations or other guid-
ance which provide for requirements for record-
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00325
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
326 
keeping or information reporting for purposes 
of administering the requirements of this para-
graph.’’, and 
(4) in paragraph (7) (as redesignated by para-
graph (2))— 
(A) in subparagraph (C), by striking ‘‘or 
(3)’’ and inserting ‘‘(3), or (4)’’, and 
(B) by striking subparagraph (E) and in-
serting the following: 
‘‘(E) APPLICABLE
TAXPAYER.—For pur-
poses of this subsection, the term ‘applicable 
taxpayer’ means any taxpayer who has been al-
lowed— 
‘‘(i) for purposes of paragraph (3), a 
credit under section 48D(a) for any prior 
taxable year, or 
‘‘(ii) for purposes of paragraph (6), a 
credit under section 48F(a) for any prior 
taxable year.’’. 
(d) ELECTIVE PAYMENT AND TRANSFER OF CRED-
IT.— 
(1) ELECTIVE PAYMENT.—Section 6417 of the 
Internal Revenue Code of 1986 is amended— 
(A) in subsection (b), by adding at the end 
the following: 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00326
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
327 
‘‘(13) The United States Vessel Investment 
credit under section 48F.’’, and 
(B) in subsection (d)(1)— 
(i) in subparagraph (E), by striking 
‘‘(C), or (D)’’ each place it appears and in-
serting ‘‘(C), (D), or (E)’’, 
(ii) by redesignating subparagraph 
(E) (as amended by clause (i)) as subpara-
graph (F), and 
(iii) by inserting after subparagraph 
(D) the following: 
‘‘(E) 
ELECTION
WITH
RESPECT
TO 
UNITED
STATES
VESSEL
INVESTMENT
CRED-
IT.—If a taxpayer other than an entity de-
scribed in subparagraph (A) makes an election 
under this subparagraph with respect to any 
taxable year in which such taxpayer has made 
a qualified investment with respect to any quali-
fied vessel (as defined in section 48F), such 
taxpayer shall be treated as an applicable entity 
for purposes of this section for such taxable 
year, but only with respect to the credit de-
scribed in subsection (b)(13).’’. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00327
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
328 
(2) TRANSFER.—Section 6418(f)(1)(A) of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘(xii) The United States Vessel In-
vestment credit under section 48F.’’. 
(e) EXCEPTION RELATING TO ALTERNATIVE TAX ON 
QUALIFYING SHIPPING ACTIVITIES.—Section 1357(c) of 
the Internal Revenue Code of 1986 is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraph (2) or (4)’’, and 
(2) by adding at the end the following: 
‘‘(4) EXCEPTION FOR UNITED STATES VESSEL 
INVESTMENT
CREDIT.—Paragraph (1) shall not 
apply with respect to any credit allowed to the tax-
payer under section 48F.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2024. 
SEC. 703. CERTAIN PAYMENTS FOR MARITIME SECURITY 
EXCLUDED FROM GROSS INCOME. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139I the following new sub-
section: 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00328
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
329 
‘‘SEC. 139J. MARITIME SECURITY PAYMENTS. 
‘‘(a) IN GENERAL.—Gross income shall not include 
any payment made pursuant to— 
‘‘(1) section 53106 of title 46, United States 
Code, 
‘‘(2) section 53801 of such title, 
‘‘(3) section 53206 of such title, 
‘‘(4) section 53406 of such title, 
‘‘(5) section 53604 of such title, 
‘‘(6) section 54101 of such title, or 
‘‘(7) section 54301 of such title. 
‘‘(b) DENIAL OF DOUBLE BENEFIT.—No deduction 
or credit shall be allowed for, or by reason of, any expendi-
ture to the extent of the amount excluded under sub-
section (a) for any payment which was provided with re-
spect to such expenditure. The adjusted basis of any prop-
erty shall be reduced by the amount excluded under sub-
section (a) which was provided with respect to such prop-
erty.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139I the following new item: 
‘‘Sec. 139J. Maritime security payments.’’. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00329
Fmt 6652
Sfmt 6211
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
330 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 704. ELIMINATION OF 30-DAY LIMITATION ON DOMES-
TIC OPERATIONS. 
(a) IN GENERAL.—Section 1355 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (f), by striking paragraph (4), 
and 
(2) in subsection (g)(2), by striking subpara-
graph (D). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
SEC. 705. QUALIFYING SHIPPING ACTIVITIES. 
Section 1356(b) of the Internal Revenue Code of 
1986 (relating to qualifying shipping activities) is amend-
ed by striking ‘‘activities in operating’’ and inserting ‘‘the 
carriage of goods (as defined in section 1 of the Carriage 
of Goods by Sea Act (46 U.S.C. 30701 note)) by’’. 
SEC. 706. QUALIFYING VESSEL. 
Section 1355(a) of the Internal Revenue Code of 
1986 is amended— 
(1) by striking paragraph (4) and inserting the 
following: 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00330
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
331 
‘‘(4) QUALIFYING
VESSEL.—The term ‘quali-
fying vessel’ means a vessel which is— 
‘‘(A) self-propelled (or a combination self- 
propelled and non-self-propelled), 
‘‘(B) a United States flag vessel or a 
United States-owned foreign flag vessel, 
‘‘(C) not less than 6,000 deadweight tons, 
and 
‘‘(D) used exclusively in the United States 
foreign trade during the period that the election 
under this subchapter is in effect.’’, and 
(2) by adding at the end the following: 
‘‘(8) UNITED
STATES-OWNED
FOREIGN
FLAG 
VESSEL.—The term ‘United States-owned foreign 
flag vessel’ means any vessel which— 
‘‘(A) is documented under the laws of a 
country (other than the United States) or a for-
eign registry which is not a foreign country of 
concern (as defined by section 4 of the SHIPS 
for America Act of 2024), 
‘‘(B) is owned by a person which— 
‘‘(i)(I) is a citizen of the United 
States (as determined under section 50501 
of title 46, United States Code), or 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00331
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
332 
‘‘(II) is controlled (within the meaning 
of section 954(d)(3)) by a citizen of the 
United States (as so determined), and 
‘‘(ii) owns a fleet of United States 
flag vessels, and 
‘‘(C) has in effect a Voluntary Intermodal 
Sealift Agreement or Voluntary Tanker Agree-
ment with the Maritime Administrator.’’. 
SEC. 707. CREDIT FOR CONSTRUCTION OF SHIPYARD FA-
CILITIES. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by section 702(a), is amended by insert-
ing after section 48F the following new section: 
‘‘SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FA-
CILITIES. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
shipyard investment tax credit for any taxable year is an 
amount equal to 25 percent of the qualified investment 
for such taxable year with respect to any qualified ship-
yard facility of a taxpayer described in section 48D(c)(1). 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment with respect to any 
qualified shipyard facility for any taxable year is the 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00332
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
333 
basis of any qualified property placed in service by 
the taxpayer during such taxable year which is part 
of a qualified shipyard facility. 
‘‘(2) QUALIFIED PROPERTY.—The term ‘quali-
fied property’ shall have the same meaning given 
such term in section 48D(b)(2), except that subpara-
graph (A)(iv) of such section shall be applied by sub-
stituting ‘qualified shipyard facility’ for ‘advanced 
manufacturing facility’. 
‘‘(3) QUALIFIED
SHIPYARD
FACILITY.—For 
purposes of this section, the term ‘qualified shipyard 
facility’ means a facility— 
‘‘(A) which is located within the United 
States (including any territory or possession of 
the United States), and 
‘‘(B) for which the primary purpose is— 
‘‘(i) constructing or repairing commer-
cial or military oceangoing vessels, 
‘‘(ii) manufacturing components which 
are critical (as determined by the Sec-
retary, in consultation with the Secretary 
of the Navy and the Maritime Adminis-
trator) to the operation of commercial or 
military oceangoing vessels, or 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00333
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
334 
‘‘(iii) manufacturing equipment which 
is used to produce or repair commercial or 
military oceangoing vessels. 
‘‘(4) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of subsection (a). 
‘‘(c) DENIAL OF DOUBLE BENEFIT.—This section 
shall not apply to any property placed in service by the 
taxpayer during the taxable year if a credit was allowed 
under section 48F to such taxpayer during such taxable 
year. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section. 
‘‘(e) TERMINATION OF CREDIT.—The credit allowed 
under this section shall not apply to property placed in 
service after December 31, 2031.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46 of the Internal Revenue Code of 
1986, as amended by section 702(b)(1), is amend-
ed— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00334
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
335 
(A) in paragraph (7), by striking ‘‘and’’ at 
the end, 
(B) in paragraph (8), by striking the pe-
riod at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(9) the shipyard investment tax credit.’’. 
(2) Section 49(a)(1)(C) of such Code, as 
amended by section 702(b)(2), is amended— 
(A) in clause (viii), by striking ‘‘and’’ at 
the end, 
(B) in clause (ix), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(x) the basis of any qualified prop-
erty (as defined in subsection (b)(2) of sec-
tion 48G) which is part of a qualified ship-
yard facility (as defined in subsection 
(b)(3) of such section).’’. 
(3) Section 50(a)(2)(E) of such Code, as 
amended by section 13702(b) of Public Law 117– 
169, is amended by striking ‘‘or 48E(e)’’ and insert-
ing ‘‘48E(e), or 48G(b)(4)’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code, as 
amended by section 702(b)(3), is amended by insert-
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00335
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
336 
ing after the item relating to section 48F the fol-
lowing new item: 
‘‘Sec. 48G. Shipyard investment tax credit.’’. 
(c) ELECTIVE PAYMENT AND TRANSFER OF CRED-
IT.— 
(1) ELECTIVE PAYMENT.—Section 6417 of the 
Internal Revenue Code of 1986, as amended by sec-
tion 702, is amended— 
(A) in subsection (b), by adding at the end 
the following: 
‘‘(14) The shipyard investment tax credit under 
section 48G.’’, and 
(B) in subsection (d)(1)— 
(i) in subparagraph (F), by striking 
‘‘(D), or (E)’’ each place it appears and in-
serting ‘‘(D), (E), or (F)’’, 
(ii) by redesignating subparagraph 
(F) (as amended by clause (i)) as subpara-
graph (G), and 
(iii) by inserting after subparagraph 
(E) the following: 
‘‘(F) ELECTION
WITH
RESPECT
TO
THE 
SHIPYARD INVESTMENT TAX CREDIT.—If a tax-
payer other than an entity described in sub-
paragraph (A) makes an election under this 
subparagraph with respect to any taxable year 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00336
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
337 
in which such taxpayer has placed in service 
any qualified property which is part of a quali-
fied shipyard facility (as defined in section 
48G), such taxpayer shall be treated as an ap-
plicable entity for purposes of this section for 
such taxable year, but only with respect to the 
credit described in subsection (b)(14).’’. 
(2) TRANSFER.—Section 6418(f)(1)(A) of the 
Internal Revenue Code of 1986, as amended by sec-
tion 702, is amended by adding at the end the fol-
lowing: 
‘‘(xiii) The shipyard investment tax 
credit under section 48G.’’. 
(d) EXCEPTION RELATING TO ALTERNATIVE TAX ON 
QUALIFYING SHIPPING ACTIVITIES.—Paragraph (4) of 
section 1357(c) of the Internal Revenue Code of 1986, as 
added by section 702(e), is amended to read as follows: 
‘‘(4) EXCEPTION FOR UNITED STATES VESSEL 
INVESTMENT CREDIT AND SHIPYARD INVESTMENT 
TAX CREDIT.—Paragraph (1) shall not apply with 
respect to any credit allowed to the taxpayer under 
section 48F or 48G.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2024. 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00337
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
338 
SEC. 708. TAX INCENTIVES RELATING TO MERCHANT MA-
RINE CAPITAL CONSTRUCTION FUNDS. 
(a) IN GENERAL.—Section 7518 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN GENERAL.—The amount deposited in a 
fund established under chapter 535 of title 46 of the 
United States Code (hereinafter in this section re-
ferred to as a ‘capital construction fund’) for a tax-
able year may not exceed the amount specified in the 
agreement under section 53503(a) of such title, 
which shall be an amount that is related to a com-
mitment to invest the revenue from the capital con-
struction fund into funding the construction of new 
vessels or funding cargo handling equipment.’’, 
(B) in paragraph (2), by striking ‘‘para-
graph (1)(B)’’ each place it appears and insert-
ing ‘‘paragraph (1)’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) REVENUE.—For the purposes of para-
graph (1), the revenue from the capital construction 
fund may include— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00338
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
339 
‘‘(A) income attributable to the operation 
of any agreement vessel in foreign commerce or 
domestic trade or fisheries or the operation of 
a marine terminal in the United States, 
‘‘(B) the net proceeds from the disposition 
of an agreement vessel or cargo handling equip-
ment or insurance or indemnity attributable to 
the vessel or cargo handling equipment, 
‘‘(C) the receipts from the investment or 
reinvestment of amounts held in the fund, and 
‘‘(D) the amount allowable as a deduction 
under section 167 for the taxable year with re-
spect to the agreement vessels or cargo han-
dling equipment.’’, 
(2) in subsection (b)(2), by striking ‘‘Amounts 
in any capital construction fund’’ and all that fol-
lows through ‘‘(not in excess of 60 percent)’’ and in-
serting ‘‘An agreed percentage’’, 
(3) in subsection (e)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN
GENERAL.—A qualified withdrawal 
from the fund is one made in accordance with the 
terms of the agreement but only if it is for— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00339
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
340 
‘‘(A) 
the 
acquisition, 
construction, 
repowering, or reconstruction of— 
‘‘(i) a qualified vessel or a barge or 
container that is part of the complement of 
a qualified vessel, or 
‘‘(ii) cargo handling equipment, or 
‘‘(B) the payment of the principal on in-
debtedness incurred in the acquisition, con-
struction, repowering, or reconstruction of— 
‘‘(i) a qualified vessel or a barge or 
container that is part of the complement of 
a qualified vessel, or 
‘‘(ii) cargo handling equipment. 
Except to the extent provided in regulations 
prescribed by the Secretary, subparagraph (A), 
and so much of subparagraph (B) as relates 
only to barges and containers, shall apply only 
with respect to barges and containers con-
structed in the United States.’’, 
(B) by redesignating paragraph (2) as 
paragraph (4), and 
(C) by inserting after paragraph (1) the 
following: 
‘‘(2) FULLY
AUTOMATED
CARGO
HANDLING 
EQUIPMENT.—No withdrawals may be made from a 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00340
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
341 
capital construction fund to purchase fully auto-
mated cargo handling equipment that is remotely 
operated or remotely monitored with or without the 
exercise of human intervention or control, if the Sec-
retary determines such equipment would result in a 
net loss of jobs within a marine terminal. 
‘‘(3) PROHIBITION ON PEOPLE’S REPUBLIC OF 
CHINA CRANES.—No withdrawals may be made from 
a capital construction fund to purchase cranes man-
ufactured in the People’s Republic of China.’’, 
(4) in subsection (f)— 
(A) in paragraph (2), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barge,’’ both 
places the term appears, 
(B) in paragraph (3), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barge,’’ both 
places the term appears, and 
(C) in paragraph (4), by inserting ‘‘cargo 
handling equipment,’’ after ‘‘barges,’’, 
(5) in subsection (g)— 
(A) in the flush matter at the end of para-
graph (2), by inserting ‘‘cargo handling equip-
ment,’’ after ‘‘advanced’’, and 
(B) in paragraph (5)(A)— 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00341
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
342 
(i) in the heading, by striking ‘‘25 
YEARS’’ and inserting ‘‘15 YEARS’’, 
(ii) by striking ‘‘26th, 27th, 28th, 
29th, or 30th taxable year’’ and inserting 
‘‘following specified taxable year’’, and 
(iii) by striking the table contained 
therein and inserting the following: 
‘‘If the amount remains in the 
fund at the close of the- 
The applicable percentage is- 
16th taxable year .........................................................................20 percent
17th taxable year .........................................................................40 percent
18th taxable year .........................................................................60 percent
19th taxable year .........................................................................80 percent
20th taxable year .........................................................................100 percent’’, 
and 
(6) in subsection (i), by striking ‘‘as in effect on 
the date of the enactment of this section’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 709. EXEMPTION OF STUDENT INCENTIVE PAYMENT 
AGREEMENTS FROM GROSS INCOME. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986, as amended 
by section 703, is further amended by inserting after sec-
tion 139J the following new section: 
‘‘SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS. 
‘‘In the case of an individual who has entered into 
an agreement described in section 51509 of title 46, 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00342
Fmt 6652
Sfmt 6201
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB
343 
United States Code, gross income does not include any 
student incentive payments made to such individual pursu-
ant to such agreement.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of the Internal 
Revenue Code of 1986, as amended by section 703, is fur-
ther amended by inserting after the item relating to sec-
tion 139J the following new item: 
‘‘Sec. 139K. Student incentive payment agreements.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to payments made 
after December 31, 2024. 
SEC. 710. MARITIME FUEL TAX PARITY. 
Section 4041(g) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
sentence: ‘‘For purposes of subsection (a)(2), the exemp-
tion under paragraph (1) shall also apply to fuel sold for 
use or used by a vessel which is both described in section 
4042(c)(1) and actually engaged in trade between the At-
lantic (including the Gulf of Mexico) or Pacific ports of 
the United States (including any territory or possession 
of the United States).’’. 
Æ 
VerDate Sep 11 2014 
22:09 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00343
Fmt 6652
Sfmt 6301
E:\BILLS\H10493.IH
H10493
kjohnson on DSK7ZCZBW3PROD with $$_JOB