The recently enacted "American Jobs Creation Act" gives significant tax breaks to a number of U.S. industries--including shipping.
MARINE LOG and BLANK ROME will present a senior level seminar CHANGES IN U.S. TAXATION OF SHIPPING INCOME in Stamford, Conn. on April 5 & 6, 2004
Make sure you know how the new tax rules work!
February 9, 2005
Title XI targeted again
Here we go again. The FY 2006 request of $294 million for the U.S. Maritime Administration is a decrease of $11 million (about 3.7 percent) below the 2005 enacted funding level. And, once again, the Administration's budget request for FY2006 seeks no funds for loan guarantees under theTitle XI program "consistent with the Administration's intent to eliminate corporate subsidies."
The budget request of $4 million is for the administration of the existing loan guarantee portfolio.
Other U.S. Maritime Administration budget requests include:
Operations and Training: The FY 2006 budget request includes $114 million to support the U.S. Merchant Marine Academy, State Maritime Schools, and MARAD operations. The budget request includes $64 million for the U.S. Merchant Marine Academy, including $17 million for critical capital improvement projects, $11 million for the State Maritime Schools, and $39 million for MARAD Operations.
Maritime Security Program: The FY 2006 budget request includes $156 million for the Maritime Security Program, for payments of $2.6 million for 60 ships, a payment increase of $0.5 million per ship, as authorized by the National Defense Authorization Act for Fiscal Year 2004. The fleet will increase from 47 to 60 active, militarily useful, privately owned vessels to meet national defense and other security requirements, and to maintain a U.S. presence in international commercial shipping. The Maritime Security Program, together with the Voluntary Intermodal Sealift Agreement Program and the Ready Reserve Force, assures DOD access to ships and crews during DOD mobilizations, and helps ensure the efficient flow of military cargo through commercial ports.
Ship Disposal: The FY 2006 budget request includes $18 million to remove approximately 13 obsolete ships from the National Defense Reserve Fleet (NDRF). MARAD continues to pursue alternative disposal methods, such as export and artificial reefing initiatives, with other Federal agencies to minimize any impact on the human and natural environment. In addition, the budget request also includes $3 million to decommission, remove, and dispose of the nuclear reactor remnants and hazardous mate- rials aboard the nuclear ship SAVANNAH.
Ready Reserve Force: The Ready Reserve Force (RRF) is funded in the Department of Defense budget, but managed by MARAD. MARAD will continue to support national security by meeting DOD sealift requirements and readiness levels for the RRF with an estimated $221 million for FY 2006 activities.