Publication 595 (Rev. February 2006) - Capital Construction Fund For Commercial Fishermen Page 2
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Be used commercially in the fisheries of the United
Capital Construction Fund
States.
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Be operated in the foreign or domestic commerce of
The following sections discuss CCF accounts and the
the United States.
types of bookkeeping accounts you must maintain when
you invest in a CCF account. They also discuss the income
Vessel weighing less than 5 tons. A small vessel,
tax treatment of CCF deposits, earnings, and withdrawals.
weighing at least 2 net tons but less than 5 net tons, must
meet all the following requirements to be considered eligi-
CCF Accounts
ble.
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Be built or rebuilt in the United States.
This section explains who can open a CCF account and
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how to use the account to defer income tax.
Be owned by a U.S. citizen.
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Have a home port in the United States.
Opening a CCF account. If you are a U.S. citizen and
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you own or lease one or more eligible vessels (defined
Be used commercially in the fisheries of the United
later), you can open a CCF account. However, before you
States.
open your CCF account, you must enter into an agreement
with the Secretary of Commerce through the NMFS. This
Deferring tax on CCF deposits and earnings. You can
agreement will establish the following.
use a CCF account to defer income tax by taking the
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following actions.
Agreement vessels. Eligible vessels named in the
agreement that will be the basis for the deferral of
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Making deposits to your CCF account from taxable
income tax.
income.
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Planned use of withdrawals. Use of CCF funds to
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Excluding from income deposits assigned to certain
acquire, build, or rebuild a vessel.
accounts (discussed later).
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CCF depository. Where your CCF funds will be held.
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Making withdrawals from your CCF account when
you acquire, build, or rebuild fishing vessels.
You can request an application kit or get addi-
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Reducing the basis of fishing vessels you acquire,
tional information from NMFS at the following
build, or rebuild to recapture amounts previously ex-
address.
cluded from tax.
NOAA/NMFS, Financial Services Division, F/MB5
Reporting requirements. Beginning with the
Capital Construction Fund Program
TIP
tax year in which you establish your agreement,
1315 East-West Highway
you must report annual deposit and withdrawal
Silver Spring, MD 20910-3282
activity to the NMFS on NOAA Form 34-82. This form is
You can obtain information on the Capital Con-
due within 30 days after you file your federal income tax
struction Fund Program at the following website:
return even if no deposits or withdrawals are made. For
more information, contact the NMFS at the address or
ccf.htm.
phone number given earlier.
You can call NMFS to request an application kit
or get additional information at (301) 713-2393
Types of Accounts You Must Maintain
(ext. 204). Their fax number is (301) 713-1939.
Within a CCF
Eligible vessels. There are two types of vessels that may
This section discusses the three types of bookkeeping
be considered eligible, those weighing 5 tons or more and
accounts you must maintain when you invest in a CCF
those weighing less than 5 tons. For each type, certain
account. Your total CCF deposits and earnings for any
requirements must be met.
given year are limited to the amount attributed to these
three accounts for that year.
Vessel weighing 5 tons or more. To be considered
eligible, the vessel must meet all the following require-
Capital account. The capital account consists primarily of
ments.
amounts attributable to the following items.
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Be built or rebuilt in the United States.
1. Allowable depreciation deductions for agreement
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Be documented under the laws of the United States.
vessels.
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