Vessel Repair Enhancement Act of 2009 - Expands, for capital construction fund provisions, the definition of "qualified vessel" to include: (1) a vessel documented under U.S. laws and maintained or repaired in a privately owned shipyard in the United States; and (2) any floating dry dock and related shipyard infrastructure (including marine railways) located in the United States and used to build, maintain, or repair U.S.-documented vessels.
Amends federal merchant marine law and the Internal Revenue Code to: (1) allow capital construction funds to be used for maintenance or repair of vessels documented under the laws of the United States; (2) establish the order of withdrawal for purposes of the tax treatment of qualified withdrawals from such funds; and (3) disallow a basis reduction for maintenance or repair withdrawals.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3370 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3370
To permit qualified withdrawals from a capital construction fund
account for the maintenance or repair of United States-flag vessels
provided that the maintenance or repair is performed within the United
States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 29, 2009
Mr. Davis of Alabama (for himself and Mr. Boustany) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Transportation and Infrastructure,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To permit qualified withdrawals from a capital construction fund
account for the maintenance or repair of United States-flag vessels
provided that the maintenance or repair is performed within the United
States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Vessel Repair Enhancement Act of
2009''.
SEC. 2. EXPANSION OF VESSEL CAPITAL CONSTRUCTION FUND.
(a) Amendments to Title 46.--
(1) Qualified vessel.--Paragraph (5) of section 53501(5) of
title 46, United States Code, is amended by striking ``and'' at
the end of subparagraph (A), by striking the period at the end
of subparagraph (B) and inserting a semicolon, and by adding at
the end the following new subparagraphs:
``(C) a vessel--
``(i) documented under the laws of the
United States; and
``(ii) maintained or repaired in a
privately owned shipyard located in the United
States; and
``(D) any floating drydock and related shipyard
infrastructure (including marine railways)--
``(i) located in the United States; and
``(ii) used to build, maintain, or repair
vessels documented under the laws of the United
States.''.
(2) Allowable purpose for fund.--Subsection (b) of section
53503 of title 46, United States Code, is amended by inserting
before the period at the end the following: ``or to provide
maintenance or repair of vessels documented under the laws of
the United States''.
(3) Qualified withdrawals.--Subsection (a) of section 53509
of title 46, United States Code, is amended by striking ``and
is for--'' and all that follows through the period at the end
and inserting the following: ``and is for--
``(1) in the case of a qualified vessel described in
subparagraph (A), (B), or (D) of section 53501(5)--
``(A) the acquisition, construction, or
reconstruction of such a qualified vessel or a barge or
container that is part of the complement of such a
qualified vessel; or
``(B) the payment of the principal on indebtedness
incurred in the acquisition, construction, or
reconstruction of such a qualified vessel or container
that is part of the complement of such a qualified
vessel; or
``(2) in the case of a qualified vessel described in
subparagraph (C) of section 53501(5), maintenance or repairs of
such a qualified vessel.''.
(4) Tax treatment of qualified withdrawals.--
(A) Ordering withdrawals.--Subsection (a) of
section 53510 of title 46, United States Code, is
amended--
(i) by redesignating paragraphs (1), (2),
and (3) as subparagraphs (A), (B), and (C),
respectively, and by moving such subparagraphs
(as so redesignated) 2 ems to the right,
(ii) by striking ``(a) Order of
Withdrawals.--A qualified withdrawal'' and
inserting the following:
``(a) Order of Withdrawals.--
``(1) In general.--Except as provided in paragraph (2), a
qualified withdrawal'', and
(iii) by adding at the end the following
new paragraph:
``(2) Special rule for certain maintenance and repair
withdrawals.--A qualified withdrawal described in section
53509(a)(2) shall be treated as made--
``(A) first from the ordinary income account;
``(B) second from the capital gain account; and
``(C) third from the capital account.''.
(B) Basis reductions.--Section 53510 of title 46,
United States Code, is amended by adding at the end the
following new subsection:
``(f) No Basis Reduction for Certain Qualified Withdrawals.--
Subsections (b) and (c) shall not apply to qualified withdrawals
described in section 53509(a)(2).''.
(b) Amendments to Internal Revenue Code of 1986.--
(1) Qualified withdrawals.--Paragraph (1) of section
7518(e) of the Internal Revenue Code of 1986 (relating to
purposes of qualified withdrawals) is amended by striking ``but
only if it is for:'' and all that follows through the period at
the end of subparagraph (C) and inserting the following: ``but
only if it is for:
``(A) in the case of a qualified vessel described
in subparagraph (A), (B), or (D) of section 53501(5) of
title 46, United States Code--
``(i) the acquisition, construction, or
reconstruction of such a qualified vessel or a
barge or container that is part of the
complement of such a qualified vessel; or
``(ii) the payment of the principal on
indebtedness incurred in the acquisition,
construction, or reconstruction of such a
qualified vessel or container that is part of
the complement of such a qualified vessel; or
``(B) in the case of a qualified vessel described
in subparagraph (C) of section 53501(5) of title 46,
United States Code, maintenance or repairs of such a
qualified vessel.''.
(2) Tax treatment of qualified withdrawals.--
(A) Ordering withdrawals.--(i) Paragraph (1) of
section 7518(f) of such Code is amended by
redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and moving
such clauses, as so redesignated, 2 ems to the right,
(ii) by striking ``(1) Ordering rule.--Any
qualified withdrawal'' and inserting the following:
``(1) Ordering rule.--
``(A) In general.--Except as provided in
subparagraph (B), any qualified withdrawal'', and
(iii) by adding at the end the following new
subparagraph:
``(B) Special rule for certain maintenance and
repair withdrawals.--A qualified withdrawal described
in subsection (e)(1)(B) shall be treated as made--
``(i) first from the ordinary income
account;
``(ii) second from the capital gain
account; and
``(iii) third from the capital account.''.
(3) Basis reductions.--Subsection (f) of section 7518 of
such Code is amended by adding at the end the following new
paragraph:
``(6) No basis reduction for certain qualified
withdrawals.--Paragraphs (2) and (3) shall not apply to
qualified withdrawals described in subsection (e)(1)(B).''.
(4) Technical amendment.--Subsection (i) of section 7518 of
such Code is amended--
(A) by striking ``section 607(k)'' each place it
appears and inserting ``section 53501'',
(B) by striking ``of the Merchant Marine Act,
1936'' and inserting ``of title 46, United States
Code,'', and
(C) by striking ``as in effect on the date of the
enactment of this section'' and inserting ``as in
effect on the date of the enactment of the Vessel
Repair Enhancement Act of 2009.''
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Transportation and Infrastructure
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
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