U.S. House tax bill includes goodies for U.S. maritime industry

U.S. House tax bill includes goodies for U.S. maritime industry    The U.S. House of Representatives approved comprehensive corporate tax legislation late Thursday that includes several bills that promise to significantly benefit the U.S. maritime industry.
   The legislation, if passed by the Senate, will allow companies to elect a U.S. tax regime based on the tonnage, or weight in tons, of a taxpayer’s U.S.-flag fleet, as opposed to regular income tax.
   Rep. William J. Jefferson, D-La., pushed the House Ways and Means Committee to include the “tonnage tax” provision (see October American Shipper, pages 72-76, online at https://www.AmericanShipper.com).
   The tax bill also includes a provision that defers U.S. tax on the foreign shipping income of a controlled foreign corporation affiliated with a U.S. company. This provision, like the tonnage tax provision, further enhances the U.S. companies’ competitiveness in the international shipping business.
   In addition, the bill includes a provision to eliminate the 4.3 percent excise tax on diesel fuel imposed on the towing and railroad industries.
   “The tax placed an un-equitable and unnecessary economic burden on critical components of the nation’s transportation industry,” said Jefferson’s office in an Oct. 8 statement. “Its elimination preserves equal tax treatment for competing modes of transportation and enhances opportunities for the towing and railroad services to provide cost effective services to their customers.”
   Lastly the bill includes a provision to help shipyards receive equal tax treatment by reducing the cash flow burden imposed on naval shipbuilders.
   The corporate tax legislation awaits Senate passage.