Capital Construction Fund

 

To provide for replacement vessels, additional vessels or reconstructed vessels, built and documented under the laws of the United States for operation in the United States foreign, Great Lakes, Marine Highways or noncontiguous domestic trades.

General information about this opportunity
Last Known Status
Active
Program Number
20.808
Federal Agency/Office
Maritime Administration, Department of Transportation
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Program Accomplishments
Fiscal Year 2016 In 2016 over $159 million of funds deposited in Capital Construction Funds was used to construct new vessels, reconstruct existing vessels or pay down debt on existing vessels. An additional $193 of earnings from the operation or sale of vessels was deposited into CCFs by the over 145 program participants, leaving a balance of over $2.1 billion on deposit.
Fiscal Year 2022 Applicants have received tax benefits for investing in their vessels and the program.
Authorization
Merchant Marine Act of 1936, Section 607, Public Law 91-469, 46 U.S.C. 53501 - 53517 , Statute 1018 U.S.C.,
The capital construction fund program is a program created to help rejuvenate the American Merchant Marine. The assistance provided is not through payment of appropriated funds, but rather allows the fund holder to defer a portion of tax monies that would otherwise be paid to the U.S. Government during the tax year. The extension of tax deferral privileges encourages the accomplishment of the program objective by allowing the fund holder to accumulate and use otherwise taxable earnings for the purposes of acquiring, constructing or reconstructing vessels built and documented in the United States and operated in the United States foreign, Great Lakes or noncontiguous domestic trade and in the fisheries.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
An applicant must be a U.S. citizen, own or lease one or more eligible vessels, have a program for the acquisition, construction or reconstruction of a qualified vessel and demonstrate the financial capabilities to accomplish the program.
Beneficiary Eligibility
None
Credentials/Documentation
Be able to provide proof of requirements called for in the Applicant Eligibility section of this program. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. An environmental impact assessment is not required for this listing. This program is excluded from coverage under E.O. 12372. Contact the Maritime Administration, Office of Financial Approvals.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. . See Federal Register Notice (46 CFR Part 390, Appendix I) dated January 29, 1976. Persons seeking to enter into a Capital Construction Fund Agreement may make application by letter to the headquarters office shown below.
Award Procedure
Citizenship of the applicant, whether the applicant owns or leases one or more eligible vessels, has an acceptable program for the acquisition, construction or reconstruction of a qualified vessel and has the financial capability to accomplish the program. Approved by the Associate Administrator for Business and Finance Development.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 30 to 90 days.
Appeals
Not applicable.
Renewals
Not applicable.
How are proposals selected?
See Award Procedure section of this program.
How may assistance be used?
The capital construction fund program is a program created to help rejuvenate the American Merchant Marine. The assistance provided is not through payment of appropriated funds, but rather allows the fund holder to defer a portion of tax monies that would otherwise be paid to the U.S. Government during the tax year. The extension of tax deferral privileges encourages the accomplishment of the program objective by allowing the fund holder to accumulate and use otherwise taxable earnings for the purposes of acquiring, constructing or reconstructing vessels built and documented in the United States and operated in the United States foreign, Great Lakes or noncontiguous domestic trade and in the fisheries.
What are the requirements after being awarded this opportunity?
Reporting
Performance Reports: Annual reports specified in the agreement and the rules and regulations.
Auditing
All financial records are subject to audit by the Internal Revenue Service and/or the Maritime Administration, Department of Transportation.
Records
See Reports.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Depends upon the individual program agreed to between the Maritime Administration and the applicant. N/A
Who do I contact about this opportunity?
Regional or Local Office
See Maritime Administration Regional Offices listed in Appendix IV of the Catalog.
Headquarters Office
Daniel Ladd
1200 New Jersey Avenue, S.E.
Washington, DC 20590 US
daniel.ladd@dot.gov
Phone: (202)366-1859
Website Address
http://www.dot.gov
Financial Information
Account Identification
69-1750-0-1-403
Obligations
(Direct Payments for Specified Use) FY 22$0.00; FY 23 est $0.00; FY 24 est $0.00; FY 21$0.00; FY 20$0.00; FY 19$0.00; FY 18$0.00; FY 17$0.00; FY 16$0.00; - No Obligations are awarded. Company's own funds are used for the program.
Range and Average of Financial Assistance
Applicant receives tax benefits for depositing assets in accordance with the program.
Regulations, Guidelines and Literature
Capital Construction Fund Agreement; Parts 390 and 391, Title 46, CFR; Part 3, Title 26, CFR.
Examples of Funded Projects
Fiscal Year 2016 In 2016 CCF funds were used to install ship exhaust emissions scrubbers in vessels in the Great Lakes and servicing Alaska, reducing the harmful emissions from the vessels.
Fiscal Year 2022 Provided for replacement vessels, additional vessels or reconstructed vessels, built and documented under the laws of the United States for operation in the United States foreign, Great Lakes, Marine Highways or noncontiguous domestic trades.

 


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