Construction Reserve Fund

 

To promote the construction, reconstruction, reconditioning, or acquisition of merchant vessels built and documented under the laws of the United States for purposes of national defense and the development of U.S. commerce.

Active 20.812 Maritime Administration, Department of Transportation C - Direct Payments For Specified Use Fiscal Year 2016 In 2016 over 20 vessels were constructed with funds deposited into CRFs. In 2016 over 30 vessels were constructed with funds deposited into CRFs.
Fiscal Year 2022 Program participants received tax benefits. Merchant Marine Act of 1936, Section 511, Public Law 74-835, 46 U.S.C. 1161
The Construction Reserve Fund (CRF), authorized under 46 USC 1161, is a financial assistance program which provides tax deferral benefits to U.S. flag operators. The CRF permits the fundholder to deposit gains attributable to the sale of, or indemnification for, loss of vessels and to defer tax on such gains provided the gains are to be reinvested in vessels. Also the CRF allows the accumulation of earnings from operations of vessels documented in the U.S., or the earnings from the investment of the Fund. The ability to accumulate funds and the tax deferral provision have enabled fundholders to construct or reconstruct in the United States, and documented under the laws of the United States, larger and better-equipped vessels, to reduce mortgage debt on the vessels, and to construct a greater number of vessels than would be possible without the program. A Construction Reserve Fund (CRF) may be established by any citizen of the United States who owns, in whole or in part, a vessel or vessels operating in the foreign or domestic commerce of the U.S., or in the fisheries. Additionally, any citizen who is operating such vessel or vessels owned by another individual may establish a CRF. Any citizen of the United States who owns, in whole or in part, a vessel or vessels operating in the foreign or domestic commerce of the U.S. or in the fisheries. Additionally, any citizen who is operating such vessel or vessels owned by another individual. Be able to provide proof of requirements called for in Applicant Eligibility section of this program. The program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is required. Contact the Maritime Administration, Office of Financial Approvals and Marine Insurance. This program is excluded from coverage under OMB Circular No. A-102. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. You may manually enter in any other application procedures not found above See Federal Register Notice (46 CFR 287.4). Persons seeking to establish a Construction Reserve Fund may make application by letter to the headquarters office shown below. This program is excluded from coverage under OMB Circular No. 2 CFR 200. Review of the application by the Office of Financial Approvals and Marine Insurance to determine citizenship of the applicant, if applicant is owner or operator of the vessel and if the proposed objective of construction, reconstruction or acquisition is acceptable. Not applicable. From 60 to 90 days. Not applicable. Not applicable. Review of the application by the Office of Financial Approvals and Marine Insurance to determine citizenship of the applicant, if applicant is owner or operator of the vessel and if the proposed objective of construction, reconstruction or acquisition is acceptable. The Construction Reserve Fund (CRF), authorized under 46 USC 1161, is a financial assistance program which provides tax deferral benefits to U.S. flag operators. The CRF permits the fundholder to deposit gains attributable to the sale of, or indemnification for, loss of vessels and to defer tax on such gains provided the gains are to be reinvested in vessels. Also the CRF allows the accumulation of earnings from operations of vessels documented in the U.S., or the earnings from the investment of the Fund. The ability to accumulate funds and the tax deferral provision have enabled fundholders to construct or reconstruct in the United States, and documented under the laws of the United States, larger and better-equipped vessels, to reduce mortgage debt on the vessels, and to construct a greater number of vessels than would be possible without the program. Not applicable. In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, nonfederal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503 All financial records are subject to audit by the Internal Revenue Service and/or the Maritime Administration, Department of Transportation. See Reports section of this program. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Depends on each individual program agreed upon between the Maritime Administration and the applicant. Method of awarding/releasing assistance: Letter. Offices listed in appendix IV of the Catalog. Daniel Ladd
1200 New Jersey Avenue, S.E.
Washington, DC 20590 US
daniel.ladd@dot.gov
Phone: (202)366-1859 http://www.marad.dot.gov 69-1750-0-1-403 (Direct Payments for Specified Use) FY 22$0.00; FY 23 est $0.00; FY 24 est $0.00; FY 21$0.00; FY 20$0.00; FY 19$0.00; FY 18$0.00; FY 17$0.00; FY 16$0.00; - Company's own funds are used for the program. Defer tax on gains by depositing the gains attributable to the sale of or indemnification for loss of vessels in accordance with the program. 46 CFR Part 287; Order and Form of Resolution which outlines details pertaining to the establishment and maintenance of the Construction Reserve Fund. Fiscal Year 2016 In 2016 over 20 vessels were constructed with funds deposited into CRFs In 2016 over 30 vessels were constructed with funds deposited into CRFs.
Fiscal Year 2017 Not available
Fiscal Year 2022 Promoted the construction, reconstruction, reconditioning, or acquisition of merchant vessels built and documented under the laws of the United States for purposes of national defense and the development of U.S. commerce.