The publication is reproduced in full below:
INTRODUCTION OF THE MARITIME FUEL TAX PARITY ACT
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HON. JOHN GARAMENDI
of california
in the house of representatives
Tuesday, October 4, 2022
Mr. GARAMENDI. Madam Speaker, today I introduce the ``Maritime Fuel Tax Parity Act,'' with Congressman John H. Rutherford (R-FL).
Under current law, maritime diesel fuel for commercial shipping or ocean-going passenger vessels is exempt from the federal fuel excise tax that supports the Highway Trust Fund. This same tax exemption applies to diesel fuel for other non-road vehicles such as train locomotives and off-highway vehicles like construction equipment or farm vehicles. Such ocean-going vessels are also exempt from the federal excise tax that supports the Inland Waterways Trust Fund.
Under current law, non-diesel fuels for ocean-going vessels and aircraft are also exempt from federal excise taxes on fuel. However, non-diesel maritime fuels are only exempt for ocean-going vessel engaged in commercial fishing, foreign trade, or interstate commerce between the Atlantic and Pacific ports of the United States and its territories or possessions. For vessel operators with scheduled service between two Pacific ports or two Atlantic ports, the current tax treatment of non-diesel maritime fuels could disincentivize them from choosing cleaner alternative fuels.
As the ranking member of Subcommittee on Coast Guard and Maritime Transportation from 2013 to 2018, I strongly support vessel operators' efforts to reduce greenhouse gas emissions from ocean-going vessels. Many operators are working to retrofit their vessels to reduce emissions or investing in new vessels powered by alternative fuels. Congress must support these critical investments to reduce greenhouse gas emissions from the maritime sector and minimize particulate pollution from vessels at our ports, which contribute to smog and is a major public health concern for communities near the waterfront.
Our ``Maritime Fuel Tax Parity Act'' would amend the Internal Revenue Code to ensure that alternative fuels are afforded the same tax exemption as maritime diesel, even when used for voyages within a single ocean. I am encouraged by the investments underway by many ferry operators, the cruise industry, and other vessel operators in transitioning to cleaner fuels, particularly hydrogen, biofuels, and renewable natural gas. Our legislation would provide tax parity with maritime diesel to incentivize continued investment by industry.
Madam Speaker, I encourage all members of the House to join us in cosponsoring the bipartisan ``Maritime Fuel Tax Parity Act.''
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SOURCE: Congressional Record Vol. 168, No. 160(1), Congressional Record Vol. 168, No. 160(2)
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