Capital Construction Fund: Who Qualifies and What You Get
Learn how commercial fishermen can use tax-deferred deposits to fund the construction or purchase of new fishing vessels.
The Capital Construction Fund is a program that allows commercial fishermen to set aside money in tax-deferred accounts to help pay for fishing vessels.
Who it's for
This program is designed for commercial fishermen who own a documented vessel.
What you get
You can make deposits into a fund that allows you to defer paying taxes on that money for a period of time. These tax-deferred funds are intended to be used for the construction, reconstruction, or acquisition of fishing vessels.
What it costs you
While there is no direct fee to join, participating requires you to enter into a formal agreement with a government body. You will also be responsible for maintaining strict and detailed financial records.
The catch to know
The money you set aside must be used for qualified vessel projects within a specific timeframe. If you do not spend the funds on these specific projects as required, you will owe back taxes on the money.
How to apply
- Ensure your fishing vessel is officially documented.
- Review the requirements for formal agreements and record-keeping.
- Consult with a tax professional regarding the specific rules for tax deferral.
- Visit the official portal for more details: https://www.fisheries.noaa.gov/national/funding-and-financial-services/capital-construction-fund