2025-15331NoticeWallet

Fishermen's Boat Fund Forms Get Another Bureaucratic Lifeline

Published Date: 8/13/2025

Notice

Summary

NOAA is renewing its paperwork for the Capital Construction Fund, which helps fishermen save money tax-free to build or fix their boats. About 1,225 fishermen will keep filling out forms that take 1.5 to 2 hours each, with no big changes or new costs. The government is asking for comments for 30 more days before final approval, keeping the process smooth and fair.

Analyzed Economic Effects

5 provisions identified: 1 benefits, 4 costs, 0 mixed.

Tax deferral for vessel construction

Under a Capital Construction Fund (CCF) Agreement, fishermen can defer taxable income from operation of their fishing vessels by placing money into a CCF account to fund construction, reconstruction, or replacement of a fishing vessel. The program is administered under the Merchant Marine Act of 1936 and implemented at 50 CFR part 259.

Deposit limits governed by statute

A CCF participant cannot deposit more than the amount specified at 46 U.S.C. 53505 into a CCF account. The statutory limit controls how much income may be deferred into the fund.

Strict withdrawal rules and tax consequence

Withdrawals from a CCF require NMFS approval before they occur, and any withdrawn monies not used for allowed purposes (a nonqualified withdrawal) are treated as income in the year withdrawn and taxed at the highest marginal tax rate for the entity involved. Deposit/withdrawal activity must be tracked and reported.

Paperwork burden continues for fishermen

NOAA is renewing the Capital Construction Fund paperwork that about 1,225 fishermen will keep filing. Forms (NOAA Form 34-82 and 88-14) take about 1.5 to 2 hours each and total 2,020 annual burden hours across respondents.

Deposit/Withdrawal reporting frequency to Treasury

The Deposit/Withdrawal Report (NOAA Form 34-82) is collected from agreement holders (frequency noted as annually) and the information on that report must also be reported semi‑annually to the Secretary of the Treasury in accordance with Public Law 115-97. This requires ongoing recordkeeping and periodic reporting.

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Key Dates

Published Date
8/13/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
National Oceanic and Atmospheric Administration
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