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
Agency: Department of Transportation
Office: Maritime Administration (MARAD)
Type(s) of Assistance Offered
Direct Payments for Specified Use
Fiscal Year 2014: In 2014, over $460 million was withdrawn from CCF’s for construction, reconstruction or debt service of vessels built in the US. Over $2.1 billion remains in CCFs for future domestic ship construction. Fiscal Year 2015: none projected. Fiscal Year 2016: none projected.
Merchant Marine Act of 1936, Section 607, Public Law 91-469, 1018 Stat. , 46 U.S.C 53501 - 53517.
Who is eligible to apply/benefit from this assistance?
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.
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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Contact the Maritime Administration, Office of Financial Approvals. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. . 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.
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.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
From 30 to 90 days.
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?
Annual reports specified in the agreement and the rules and regulations. Cash reports are not applicable. Annual reports specified in the agreement and the rules and regulations. SF-425. Annual reports specified in the agreement and the rules and regulations.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. All financial records are subject to audit by the Internal Revenue Service and/or the Maritime Administration, Department of Transportation.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Depends upon the individual program agreed to between the Maritime Administration and the applicant. See the following for information on how assistance is awarded/released: N/A.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. See Maritime Administration Regional Offices listed in Appendix IV of the Catalog.
Daniel Ladd 1200 New Jersey Avenue, S.E., Washington, District of Columbia 20590 Phone: (202)366-1859
(Direct Payments for Specified Use) FY 14 $0; FY 15 est $0; and FY 16 est $0 - 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 2014: Construction of two LNG-powered container ships in San Diego. Fiscal Year 2015: No Current Data Available Fiscal Year 2016: No Current Data Available