H.R.2925 - Maritime Fuel Tax Parity Act (119th Congress)
Summary
H.R. 2925, the Maritime Fuel Tax Parity Act, seeks to amend the Internal Revenue Code of 1986 to extend an existing excise tax exemption on alternative motorboat fuels. This extension would apply to vessels operating solely between Atlantic or Pacific ports of the United States, including its territories and possessions. The bill was introduced in the House of Representatives on April 17, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The primary effect of this bill would be to reduce the tax burden on certain maritime vessels. This could lead to lower operating costs for these vessels. The change would be retroactive, applying to sales after December 31, 2023.
Potential Benefits
- Reduced fuel costs for eligible vessels, potentially leading to lower prices for goods transported by these vessels.
- Increased competitiveness for maritime businesses operating on a single coast.
- Simplification of tax compliance for affected vessel operators.
- Potential for increased investment in the maritime sector due to reduced operating expenses.
- Supports trade between U.S. ports.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in government revenue due to the tax exemption, though likely minimal.
- Possible competitive disadvantage for vessels not meeting the specific criteria for the exemption.
- Complexity in determining eligibility for the exemption, potentially leading to disputes.
- The benefits may disproportionately favor specific regions or companies.
- May incentivize fuel consumption if costs are lowered significantly.
Constitutional Alignment
This bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce among the several states. By reducing tax burdens on vessels engaged in interstate trade, the bill facilitates and potentially stimulates such commerce. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).