b"PVA estimates that more than 200 of its mem- PVA estimates thatMARAD has a web page devoted to the CCF bers,forwhomtheCCFprogramwasnotprogram which can be found here. It contains previously available, will now be able to takemore than 200 of a link that explains the application process and advantage of it. anotheroneshowingtheCCFrulesinthe its members, for Code of Federal Regulations.A CCF can be likened to a maritime IRA. A participating private vessel operator workswhom the CCFThe PVA Annual Convention at MariTrends with the U.S. Maritime Administration (MA- program was not2023 in Long Beach, Calif., will feature a pre-RAD) to set up a fund. The operator cansentation on the Capital Construction Fund then deposit yearly earnings into the fund.previously available,by Mr. Daniel Ladd, the Maritime Adminis-Thedepositsareshieldedfromtheopera- tration official responsible for overseeing the tors federal income taxes, as are any earningswill now be able toprogram.Registrationfortheconventionis produced from the deposited moneys. Statedopen now on the event webpage.another way, the passenger vessel operator'stake advantage of it.taxable income for the year of the deposit is reduced by the amount placed in the Capital Construction Fund!When the operator is ready to build, or acquire a new vessel, or reconstruct an existing one, funds in the CCF can be withdrawn for this purpose. Withdrawn funds can also be used to pay off debt attributed to vessel acquisition. There will be no federal taxes levied on the withdrawals, so long as the funds are used for allowable purposes, but the new vessels basis for computing depreciation is lowered by the amount withdrawn from the CCF.This legislative accomplishment comes about as a result of the determined advocacy by Con-gressman John Garamendi of California and his allies in Congress.Previously, only a limited group of domestic passenger vessel operators could take advan-tage of the CCF program. They were operators who wished to put new passenger vessels (of any type) into service in Alaska, Hawaii, the Great Lakes, Puerto Rico, or the U.S. Virgin Islands, plus operators who wished to put new vehicle-carrying ferries (but not passenger-only ferries or other types of passenger vessels) into service anywhere in the U.S.As a result of the new law, U.S.-flagged passen-ger vessel operators with a CCF can withdraw fundstobuildoracquireanewpassenger vessel(orreconstructanexistingpassenger vessel) of any type for operation anywhere in the country.ApassengervesselconstructedusingCCF funds must be built in an American shipyard. Therefore, if (as expected) expanded participa-tion in the CCF program leads to new vessel orders, it will benefit PVA associate members that operate shipyards, those that design ves-sels, and those that supply vessel components.21 JANUARY/FEBRUARY 2023"