WASHINGTON,
D.C. – Senators Lisa Murkowski and Ron Wyden (D-Oregon) today introduced a bill
that gives commercial fisherman – in Alaska, Oregon and those nationwide –
added flexibility when it comes to funds they’ve set aside for renovations or
new construction of their fishing boats.
“Right
now, the way this fishery finance program works is that we penalize fishermen
in the wallet just as they’re trying to retire,” said Murkowski, the
lead Republican sponsor of the bill. “By making a necessary change to
existing law, we’re giving them a one-time opportunity to leave the program and
not be forced to spend money unnecessarily.”
“There
was a time when CCF accounts were an integral part of building the modern and
efficient fleet of fishing vessels the U.S. needed to compete with foreign
fishing outfits,” Wyden said. “But the program’s success has actually
made it less necessary and the money that is sitting idle in CCF accounts
is money that can be better used to start new businesses or create jobs. This
bill will make it so that fishermen aren’t penalized for withdrawing that
money, which could be better used elsewhere.”
The
Capital Construction Fund (CCF) program was created in 1976 and allows fishing
vessel owners to set aside some of their profits on a tax-deferred basis, as
long as those dollars are spent on refurbishing or replacing their boats.
Withdrawals from the fund for any other reason are strongly discouraged and
subject to standard taxes, interest, and penalty fees. The program has become a
victim of its own success, and now vessel owners – when the time comes they
want to stop fishing and exit the industry – are forced to pay high penalties
for taking their proceeds out of the fund, without the intent to renovate their
boats or buy new ones. The CCF program would remain intact for those
fishermen who would like to remain in the industry and use its tax benefits to
upgrade their fishing vessels.
“There
are millions of dollars set aside in the CCF nationwide.” Murkowski added. “The
current policy leaves fisherman who want to exit the industry a choice between
taking a huge loss in taxes or building bigger and better boats that they and
the fishery don’t need. This bill adds a common-sense way out for
business owners who want to retire and get out of the fishing industry.”
Senators
Mark Begich, Maria Cantwell (D- WA) and Patty Murray (D-WA) have also
signed on as co-sponsors for the legislation
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