Sec. 505. Capital construction fund
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Chapter 535 of subtitle V of title 46, United States Code, is amended— in section 53501— by redesignating paragraphs (2), (3), (4), (5), (6), (7), (8), and (9), as paragraphs (3), (5), (7), (8), (9), (10), (11), and (12), respectively; by inserting after paragraph
(1)the following: The term cargo handling equipment means any vehicle or land-based equipment (excluding marine container chassis, but including cargo-handling equipment that emits less than 1 gram of CO2(kWh)), and the associated marine terminal or port landside infrastructure, used at a marine terminal to lift or move cargo— manufactured in the United States (including any territory or possession of the United States); or manufactured outside of the United States, if such equipment is not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality as determined by the Secretary. ; by inserting after paragraph (3), as redesignated by subparagraph (A), the following: The term foreign commerce means— commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and commerce or trade between foreign countries. ; by inserting after paragraph (5), as redesignated by subparagraph (A), the following: The term marine terminal means wharves, bulkheads, quays, piers, docks, and other berthing locations and adjacent storage or adjacent areas and structures associated with the primary movement of cargo or materials from vessel to shore, or from shore to vessel, including structures which are devoted to receiving, handling, holding, consolidating, loading, or delivery of waterborne shipments, including areas devoted to the maintenance of the terminal or equipment. ; in paragraph (3)(A)(iii), as redesignated by subparagraph (A), by striking foreign or domestic trade of the United States and inserting foreign commerce or domestic trade of the United States ; and in paragraph (8)(A)(iii), as redesignated by subparagraph (A), by striking foreign or domestic trade of the United States and inserting foreign commerce or domestic trade of the United States ; in section 53503— by striking subsection
(a)and inserting the following: A citizen of the United States may make an agreement with the Secretary under this chapter to establish a capital construction fund for a vessel if that citizen— owns or leases an eligible vessel; or commits, as a part of such agreement, to build and operate an eligible vessel not later than 5 years after establishing the capital construction fund. An operator of a United States marine terminal may make an agreement with the Secretary under this chapter to establish a capital construction fund for the marine terminal. ; and by striking subsection (b), and inserting the following: The purpose of the agreement shall be to provide— replacement vessels, additional vessels, or reconstructed vessels, built in the United States and documented under the laws of the United States, for operation in the foreign commerce or domestic trade of the United States or in the fisheries of the United States; or replacement cargo handling equipment, additional cargo handling equipment, or reconstructed cargo handling equipment for operation at marine terminals in the United States. ; in section 53504(b), by inserting or United States marine terminal after agreement vessel ; by striking section 53505 and inserting the following: The amount deposited in a capital construction fund for a taxable year may not exceed the amount specified in the agreement under section 53503(a), which shall be an amount that is related to a commitment to invest the revenue from the capital construction fund into funding the construction of new vessels or funding cargo handling equipment. For the purposes of subsection (a), the revenue from the capital construction fund may include— income attributable to the operation of the agreement vessel in foreign commerce or domestic trade or fisheries or the operation of a marine terminal in the United States; the amount allowable as a deduction under section 167 of the Internal Revenue Code of 1986 for the taxable year with respect to the agreement vessels or cargo handling equipment; the net proceeds from the disposition of an agreement vessel or cargo handling equipment or insurance or indemnity attributable to the vessel or cargo handling equipment; and the receipts from the investment or reinvestment of amounts held in the fund. For a lessee, the maximum amount that may be deposited for an agreement vessel under subsection
(a)for any period shall be reduced by any amount the owner is required or permitted, under the capital construction fund agreement, to deposit for that period for the vessel under subsection (a). ; in section 53506— in subsection (a), by striking Except as provided in subsection (b), amounts in the fund may be invested only in interest-bearing securities approved by the Secretary. ; and in subsection (b), by striking With the approval of the Secretary, an agreed percentage (but not more than 60 percent) of the assets of the fund and inserting An agreed percentage of the assets of the fund ; in section 53509— by striking subsection (a), and inserting the following: Subject to subsections
(b)and (c), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for— the acquisition, construction, repowering, or reconstruction of— a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or cargo handling equipment; or the payment of the principal on indebtedness incurred in the acquisition, construction, repowering, or reconstruction of— a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or cargo handling equipment. ; by redesignating subsection
(c)as subsection (e); and by inserting after subsection
(b)the following: No withdrawals may be made from a capital construction fund to purchase fully automated cargo handling equipment that is remotely operated or remotely monitored with or without the exercise of human intervention or control, if the Secretary determines such equipment would result in a net loss of jobs within a marine terminal. No withdrawals may be made from a capital construction fund to purchase cranes manufactured in the People’s Republic of China or by foreign entities of concern (as defined in section 4 of the SHIPS for America Act of 2024 ). ; in section 53510— in subsection (b), by inserting cargo handling equipment, after barge, both places the term appears; in subsection (c), by inserting cargo handling equipment, after barge, both places the term appears; and in subsection (d), by inserting cargo handling equipment, after barges, ; in section 53511(e)(1), by striking the table contained therein and inserting the following: If the amount remains in the fund at the close of the- The applicable percentage is- 16th taxable year 20 percent 17th taxable year 40 percent 18th taxable year 60 percent 19th taxable year 80 percent 20th taxable year 100 percent ; and in section 53512(b)(1), by adding cargo handling equipment, after advanced . The Secretary shall annually publish in the Federal Register a request for information regarding the availability of cargo handling equipment manufactured in the United States and shall share the results of such request for information with capital construction fund holders.