Feds updating CCF fishing vessel modernization program rules
SEAFOODNEWS.COM [SCOM] - September 25, 2014 -
The NMFS Capital Construction Fund (CCF) allows fishermen to defer taxable income from operation of their fishing vessels. This tax-deferred fishing income under the CCF program when used to help pay for a vessel project is, in effect, an interest-free loan from the Government.
NMFS is proposing regulations to eliminate provisions that no longer meet the needs of CCF participants, and to simplify and clarify the regulations to better implement the purposes of the underlying statute.
These amendments would eliminate the minimum cost and maximum allowable completion time for reconstruction projects, requirements for minimum annual deposits and the requirement that any vessel acquired with CCF funds must be reconstructed, regardless of vessel condition.
The proposed new regulations would also add a restriction that the CCF program would not allow withdrawals of funds for projects that increase harvesting capacity. The comment period ends November 10.
To Read Full Story Login Below.