To
provide for replacement vessels, additional vessels or reconstructed
vessels, built and documented under the laws of the United States
for operation in the United States foreign, Great Lakes or noncontiguous
domestic trades.
TYPES
OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
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.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: 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.
Beneficiary
Eligibility: U.S. citizen.
Credentials/Documentation:
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.
Pre-application
Coordination: Contact the Maritime Administration,
Office of Ship Financing. This program is excluded from coverage
under OMB Circular No. A-102 and E.O. 12372.
Application
Procedure: 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.
Award
Procedure: The Office of Ship 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 Shipbuilding.
Deadlines:
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.
Range
of Approval/Disapproval Time: From 30 to 90
days.
Appeals:
None.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
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:
Reports:
Annual reports specified in the agreement and the rules and regulations.
Audits:
All financial records are subject to audit by the Internal Revenue
Service and/or the Maritime Administration, Department of Transportation.
Records:
See Reports.
FINANCIAL
INFORMATION:
Account
Identification: 69-1750-0-1-403.
Obligations:
(Salaries and expenses) FY 01 $128,896; FY 02 est $132,376; and
FY 03 est $135,818.
Range
and Average of Financial Assistance:
Applicant receives tax benefits for depositing assets in accordance
with the program.
As of March, 2002, there were a total of 147 active individual and
consolidated Capital Construction Fund Agreements, with reported
cumulative deposits since program inception in excess of $6.7 billion
to accomplish construction and acquisition programs. Thus far in
calendar year 2002, 9 applications have been approved.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Capital Construction Fund Agreement; Parts 390 and 391, Title 46,
CFR; Part 3, Title 26, CFR.
INFORMATION
CONTACTS:
Regional
or Local Office: See Maritime Administration
Regional Offices listed in Appendix IV of the Catalog.
Headquarters
Office: Associate Administrator for Shipbuilding,
Office of Ship Financing,Maritime Administration, Department of
Transportation, Washington DC 20590. Telephone: (202) 366-5744.
Web
Site Address: http://www.marad.dot.gov
EXAMPLES
OF FUNDED PROJECTS:
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. mainland.
