Federal

Maritime Fuel Tax Parity Act

Source: Congress.gov · 336 words in original text

What This Bill Does

This bill changes federal tax rules for certain ships that carry cargo between U.S. coasts. It extends an exemption from an excise tax (a type of federal tax on specific goods) on alternative motorboat fuels to include ships that serve only one coast instead of multiple coasts. The bill is called the "Maritime Fuel Tax Parity Act."

Who It Affects

Vessels (ships) engaged in trade between Atlantic ports (including the Gulf of Mexico) or Pacific ports of the United States. This includes ships serving U.S. territories or possessions.

Key Provisions

• Vessels that trade between Atlantic or Pacific ports of the United States are now exempt from the excise tax on alternative motorboat fuels, provided the vessel meets the description in another section of tax law (Sec. 2)

What Changes

Ships that operate exclusively between Atlantic ports or exclusively between Pacific ports will now qualify for an exemption from federal excise taxes on alternative motorboat fuels used as fuel supplies. Previously, this exemption did not apply to these vessels.

Important Definitions

Alternative motorboat fuels: Not specified in bill text Vessel: Not specified in bill text

Effective Date

The exemption applies to fuel sales made after December 31, 2021 (Sec. 2(b))

I 118TH CONGRESS 1ST SESSION H. R. 1044 To amend the Internal Revenue Code of 1986 to extend the exemption from the excise tax on alternative motorboat fuels sold as supplies for vessels or aircraft to include certain vessels serving only one coast. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 14, 2023 Mr. RUTHERFORD (for himself and Mr. GARAMENDI) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend the exemption from the excise tax on alternative motor- boat fuels sold as supplies for vessels or aircraft to include certain vessels serving only one coast. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Maritime Fuel Tax 4 Parity Act’’. 5 VerDate Sep 11 2014 00:18 Mar 09, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1044.IH H1044 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 1044 IH SEC. 2. EXEMPTION FROM EXCISE TAX ON ALTERNATIVE 1 MOTORBOAT FUELS EXTENDED TO INCLUDE 2 CERTAIN VESSELS SERVING ONLY ONE 3 COAST. 4 (a) IN GENERAL.—Section 4041(g) of the Internal 5 Revenue Code of 1986 is amended by adding at the end 6 the following new sentence: ‘‘For purposes of subsection 7 (a)(2), the exemption under paragraph (1) shall also apply 8 to fuel sold or used by a vessel which is both described 9 in section 4042(c)(1) and actually engaged in trade be- 10 tween Atlantic (including the Gulf of Mexico) or Pacific 11 ports of the United States (including any territory or pos- 12 session of the United States).’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply to sales after December 31, 2021. 15 Æ VerDate Sep 11 2014 00:18 Mar 09, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H1044.IH H1044 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.