View non-flash version
38 MN January 2011 John Groundwater, Executive Director of the Passenger Vessel Association (PVA), on Legislation Actions in Congress this year provided a mixed bag for passenger vessel operators. Because of the new tax law, pri- vate operators will be able to take advantage of an imme- diate 100% depreciation deduction for capital invest- ments made in 2011. Also, owners of passenger vessel businesses who desire to pass their enterprises down to the next generation will be gratified by the new estate tax rates and exemptions. PVA’s efforts with Congress also paid off when the final version of the newly enacted Cruise Vessel Security and Safety Act did not apply to U.S.-flagged “small ship” overnight cruise vessels; the well-publicized problems of assaults and missing passengers that prompted the legisla- tion had not occurred on PVA members’ vessels. PVA was heartened this past summer when Congress continued until late 2013 the provision that exempts a passenger vessel of less than 79 feet in length from com- plying with the EPA’s Vessel General Permit for waste- water discharges incidental to normal operations; PVA had pushed for this exemption to be extended. A big “win” is the part of the Coast Guard Authorization Act of 2010 that relieves holders of Coast Guard licenses and merchant marine documents from having to obtain or renew a TWIC (Transportation Worker Identification Credential) to work on a passenger vessel not required to have a security plan (generally, a passenger vessel author- ized to carry not more than 150 passengers). On the other hand, that same law will eventually place new mandates on passenger vessel operators for safety management sys- Passenger Vessels in 2011 MarineNews spoke with industry experts to get an overview of the passenger vessel market as it stands today, including a leg- islative update and business leaders’ insights on pricing, ridership and vessel construction and renovation. Groundwater “It remains to be seen whether the new Health Care Act will produce affordable coverage for most individu- als, as its promoters claim, but the ‘small business’ exemption may relieve a number of passenger vessel operators from having to comply with the law’s employer mandate.” Market Report
