Section Front Front Page |
 |
|
Rep. Hunter Introduces Bill To Boost U.S. Cruise Industry
| |||
| Legislation Would Promote Construction, Operation Of Cruise Ships In The U.S. | |||
|
Rep. Duncan Hunter (R-Ca.) has introduced legislation that would assist in revitalizing the U.S. cruise industry by providing financial incentives to U.S. shipyards and cruise ship operators. H.R.3392, the All American Cruise Act of 1999, offers a package of tax incentives to U.S. shipyards for building large cruise ships, and to U.S. cruise ship operators under certain conditions. "I urge all of my colleagues to join me in sponsoring this legislation," Rep. Hunter said. "Throughout our history, seafaring vessels have played a critical role in our military, cargo movement and entertainment. The time has come to bring the cruise industry back to America's shores." Introduced Nov. 16, 1999, H.R.3392 was referred to the House Committee on Ways and Means and to the Committees on Armed Services and Transportation and Infrastructure. H.R.3392 would actually assist in the development of the U.S.-built, U.S.-flag cruise industry, unlike two other cruise-oriented bills introduced earlier this year. Those bills, H.R. 248 and S.1510, were introduced by Rep. Mark Sanford (R-S.C.) and Sen. John McCain (R-Az.), respectively. They were introduced under the guise of promoting the development of the U.S. cruise industry. In reality, both H.R.248 and S.1510 would cripple the current U.S. cruise fleet and stifle the development of a U.S.-built, U.S.-flag cruise industry. H.R.248 and S.1510 would open U.S. domestic cruise trades to foreign cruise ships and foreign operators, such as Carnival Cruise Lines, by nullifying key provisions of the Passenger Vessel Services Act. The Passenger Vessel Services Act generally reserves the transportation of passengers directly between two points in the U.S. for vessels built in the U.S., manned by U.S. citizens and owned by companies for which a majority of stakeholders are U.S. citizens. Rather than opening U.S. domestic trades to foreign interests, Rep. Hunter's legislation would boost the development of U.S.-built, U.S.-flag cruise ships in order to revitalize the U.S. cruise industry and create thousands of jobs for U.S. citizens. "American ship building firms have been placed at a decisive disadvantage in the global shipbuilding market due to U.S. tax laws and European subsidy policies," Rep. Hunter said. "European builders of cruise ships receive numerous tax incentives and other assistance from their governments to reduce the price of their ships. "Foreign cruise companies operating from U.S. ports pay no U.S. income tax, an immediate price advantage for the foreign competitor," he said. "The All American Cruise Act is designed to bring this industry back to our shores through tax parity desperately needed to encourage our domestic industry," he said. "My bill, among other recommended changes, would implement the following: tax credits to U.S. builders of cruise ships of 20,000 gross tons and greater; U.S. cruise ship owners will be exempt from paying U.S. corporate income tax; cruise ship owners will be able to depreciate their ships over a five-year period, rather than the current 10-year period; the current $2,500 business tax deduction limit for a convention on a cruise ship would be repealed to give the same unlimited tax deduction for business conventions held at shore-side hotels; and a 20 percent tax credit will be granted to U.S. companies which operate ships using environmentally-clean engines manufactured in the U.S.," he said. "While some of these tax provisions may at first glance seem costly to the U.S. Treasury, it should be noted that, since cruise ships are not presently built domestically nor operated as U.S. companies, current tax revenues will not be impacted," Rep. Hunter said. | |||
 | |||
|
