H.R. 2925: Maritime Fuel Tax Parity Act

This bill, titled the Maritime Fuel Tax Parity Act, proposes an amendment to the Internal Revenue Code of 1986 regarding the excise tax on alternative motorboat fuels. The main aim of the bill is to expand the exemption from this excise tax to include certain vessels that serve only one coast of the United States.

Key Provisions

• Tax Exemption Expansion: The bill specifically seeks to amend Section 4041(g) of the Internal Revenue Code. It allows the exemption from the excise tax on alternative fuels to apply to vessels that engage in trade between Atlantic or Pacific ports of the United States, as well as any U.S. territory or possession.
• Definition of Eligible Vessels: The vessels that would benefit from this tax exemption must meet certain criteria defined in section 4042(c)(1) of the Internal Revenue Code.
• Effective Date: The changes proposed in this amendment will be applicable to sales of fuel that occur after December 31, 2023.

Purpose of the Bill

The purpose of extending this tax exemption is to encourage the use of alternative fuels in maritime transport, aiming to promote environmentally friendly fuel options for vessels that operate along the U.S. coasts. This initiative may help the maritime industry transition towards more sustainable fuel practices.

Legislative Process

The bill was introduced in the U.S. House of Representatives and referred to the Committee on Ways and Means for further evaluation and discussion. This process is necessary for the bill to be debated and potentially approved before it can become law.

Relevant Companies

• AAPL - Apple Inc.: The maritime supply chain may impact companies relying on shipping for logistics, though Apple itself is primarily a technology company.
• CSX - CSX Corporation: A major transportation company that could be affected by changes in fuel costs associated with legislation that promotes alternative fuel use.
• UPS - United Parcel Service: As a logistics and parcel delivery service, UPS operates using various modes of transport that may be influenced by maritime fuel regulations.