b'LETTER FROM THE EXECUTIVE DIRECTORPVA is on Your Side AT THE HELMJOHN GROUNDWATER // EXECUTIVE DIRECTORT he Passenger Vessel Association strives to effectively ander, this month U.S. Representatives Darin LaHood (IL-16) and Jimmy efficientlyrepresentthebusinessinterestsofitsmem- Panetta (CA-19) reintroduced the CERTS Tax Exemption Act (H.R. bers. This is an excerpt from the associations vision3510). This bipartisan legislation would provide tax relief for CERTS statement which guides all aspects of PVAs strategic plan- fund recipients from the passenger vessel, motorcoach, and school bus ning and its work on behalf of members. Whether PVA staff andindustries. The legislation is also sponsored by U.S. Representatives leaders are developing programs for use in training, or advocating forJon Rose (TN-06), Jared Golden (ME-02), Mike Kelly (PA-16), and PVA members with the U.S. Coast Guard or on important legislativeEarl Blumenauer (OR-03).matters on Capitol Hill, we never lose sight of how we can best serve our members interests. CAPITAL CONSTRUCTION FUNDIn late 2022, PVA had a major legislative victory when Congress ex-DRYDOCK CREDIT SUCCESS panded the eligibility of passenger vessel operators to participate in the Sometimes the wheels of progress turn slowly, but progress is measuredCapital Construction Fund (CCF). This was a longstanding goal of in the ultimate results for PVA members. For many years, PVA tena- PVA, and it now allows more PVA members to participate in this im-ciously argued that the Coast Guard needed to clarify when credit forportant program. Administered by the U.S. Maritime Administration, a drydock was given. Over the years,the program is essentially a maritime PVAmembershavebeenimpactedIRA where a U.S. passenger vessel op-byasystemthatissuedthecrediteratorregardless of the type of ser-forwhenthedrydockstartedevenAny PVA member that isvicecan accumulate capital tax-free whenadrydocktooklongerthanforconstructing,reconstructing,or expected. During the PVA Annuala private owner of a U.S.- acquiring a vessel. Fund withdrawals Convention at MariTrends 2023 inflagged passenger vessel are also tax free if they are used for al-Long Beach, Calif., the Coast Guardlowable purposes. personallydeliveredthegoodnewsregardless of geographic that the Office of Commercial VesselWhile we have mentioned this to you Compliance (CVC) at Coast Guardlocation, regardless of typequite a few times since coming into headquarters had issued an update tolaw,questionsarestillbeingasked Work Instruction CVC-WI-029 cit- of servicenow has theaboutwhoqualifiesfortheexpand-ing that drydock credit will be issueded program. Any PVA member that from the date the exam is completed,option of accumulatingisaprivateownerofaU.S.-flagged not started. This success was clearlypassengervesselregardlessofgeo-a long time in the making and is a di- capital from yearlygraphic location, regardless of type of rect result of consistent and influen- earnings tax-free for theservicenow has the option of accu-tial PVA advocacy efforts.mulating capital from yearly earningspurpose of constructing,tax-free for the purpose of construct-CERTS TAX RELIEF ing,reconstructing,oracquiringa Asmentioned,makingprogressinreconstructing, orvessel. We estimate that more than 200 Washington,D.C.,canbeaslow,PVA members will now be able to take laborious,andmethodicalprocess.acquiring a vessel. advantage of the CCF who could not Sometimes it can be surprising andparticipate before.evenrewarding.PVAleaders,staff, and others, were able to make signif- I encourage you to consider this im-icant legislative progress during the coronavirus pandemic advocatingportant program in your capital planning. For complete information for programs such as the Paycheck Protection Program (PPP), theabout the CCF, visit this site.Restaurant Revitalization Program, and the Coronavirus Economic Relief for Transportation Services (CERTS) program. These programsCAPTAIN ROBERT M. LUMPPwere lifelines for the passenger vessel industry. Unlike the PPP andI am saddened to inform you of the passing of PVA Past President and restaurant program, CERTS was taxable. PVA argued that CERTSlongtime PVA supporter Captain Robert M. Lumpp. Captain Lumpp should be non-taxable, but as the effects of the pandemic dissipated itwas an active member of PVA in its early days as the National Associ-appeared that Congress lost momentum to support legislation whichation of Passenger Vessel Owners (NAPVO). He was owner/operator would provide such tax relief for CERTS funding recipients. Howev- of the Mark Twain Riverboat Company in Hannibal, Mo., and was Continued on page 467 MAY 2023'