The types of projects funded through the CCF are the acquisition, construction, and reconstruction of qualified agreement vessels such as tugs, barges, break bulk cargo vessels, LNG carriers, tankers, etc.
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.
The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.
As of March, 2008, there were a total of 160 active individual and consolidated Capital Construction Fund Agreements, with reported cumulative deposits since program inception in excess of $4.2 billion to accomplish construction and acquisition programs. Thus far in calendar year 2008, 2 applications have been approved.
Uses and Use Restrictions
The capital construction fund program is a program created by the Merchant Marine Act of 1970 to help rejuvenate the American Merchant Marine.
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.
An applicant must be a U.S.
citizen, own or lease one or more eligible vessels, have a program for the acquisition, construction or reconstruction of a qualified vessel and demonstrate the financial capabilities to accomplish the program.
Be able to provide proof of requirements called for in the Applicant Eligibility section of this program. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Contact the Maritime Administration, Office of Ship Financing.
This program is excluded from coverage under OMB Circular No.
A-102 and E.O.
See Federal Register Notice (46 CFR Part 390, Appendix I) dated January 29, 1976. Persons seeking to enter into a Capital Construction Fund Agreement may make application by letter to the headquarters office shown below. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.
The Office of Shipyards and Marine Financing reviews the application to determine the citizenship of the applicant, whether the applicant owns or leases one or more eligible vessels, has an acceptable program for the acquisition, construction or reconstruction of a qualified vessel and has the financial capability to accomplish the program. Approved by the Associate Administrator for Business and Workforce Development.
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.
Merchant Marine Act of 1936, Section 607, as amended; Public Law 91-469, 84 Stat. 1018.
Range of Approval/Disapproval Time
From 30 to 90 days.
Formula and Matching Requirements
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.
Length and Time Phasing of Assistance
Depends upon the individual program agreed to between the Maritime Administration and the applicant.
Post Assistance Requirements
Annual reports specified in the agreement and the rules and regulations.
All financial records are subject to audit by the Internal Revenue Service and/or the Maritime Administration, Department of Transportation.
(Salaries and expenses) FY 07 $0; FY 08 est not available; and FY 09 est not reported.
Range and Average of Financial Assistance
Applicant receives tax benefits for depositing assets in accordance with the program.
Regulations, Guidelines, and Literature
Capital Construction Fund Agreement; Parts 390 and 391, Title 46, CFR; Part 3, Title 26, CFR.
Regional or Local Office
See Maritime Administration Regional Offices listed in Appendix IV of the Catalog.
Associate Administrator for Business and Workforce Development, Office of Shipyards and Marine Financing, Maritime Administration, 1200 New Jersey Avenue, S.E., Department of Transportation, Washington DC 20590. Telephone: (202) 366-5737.
Criteria for Selecting Proposals
See Award Procedure section of this program.
Nobel Peace Prize winner, founder of Grameen Bank and chairman, Muhammad Yunus, writes about happiness: That happiness comes from many sources, not as the current economic framework assumes, just from making money.