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 12, 2005
Budget eliminates tanker program
On Friday, the Office of Management and Budget released a document listing programs the Bush Administration is seeking to kill off in its FY 2006 budget request. Included in the list is the National Defense Tank Vessel Construction Program, which was funded at $74 million in FY2005.
The Administration says: "The National Defense Tank Vessel Construction Program was established in 2005 to provide financial assistance to the private sector for the construction of new product tank vessels (e.g. specialized oil tankers). $74 million was appropriated for this program in the Consolidated Appropriations Act of 2005. While these vessels may be made available for the military when needed, the primary purpose will be for commercial service."
"The President's Budget proposes to terminate the National Defense Tank Vessel construction program and rescind the $74 million provided in 2005. The program is similar to a costly and ineffective ship construction program that was terminated in 1981. The proposal to terminate this program is aimed at reducing unwarranted corporate subsidies. The Administration believes that the commercial shipbuilding industry should rely on private sector financial investment based on market demand."