A bipartisan group of lawmakers in the House has proposed a new law that would provide U.S. merchant mariners working in international trade with a tax break similar to what other Americans working abroad receive. This is part of a larger effort to tackle ongoing issues with recruiting and keeping mariners.
The American Mariner Tax Fairness Act, introduced by Rep. Brian Fitzpatrick (R-Pa.) along with Reps. Tom Suozzi (D-N.Y.), Nicole Malliotakis (R-N.Y.), and Brendan Boyle (D-Pa.), aims to extend the federal foreign earned income exclusion to qualifying U.S. mariners serving on U.S.-flagged vessels involved in foreign trade.
According to the legislation, merchant mariners who work at least 90 days within a 12-month period on qualifying vessels would be eligible for this tax exclusion. The benefit would apply only to income earned during those qualifying periods spent at sea.
Supporters argue that this change would help make maritime careers more appealing, especially when the U.S. maritime industry is facing difficulties in recruiting and retaining enough qualified mariners to meet commercial and national security needs.
“America’s maritime strength relies heavily on the men and women who operate our ships,” Fitzpatrick stated. “Our merchant mariners often spend months away from their families doing challenging, critical work that keeps commerce flowing and maintains a capability that our nation cannot afford to lose.”
This legislation comes at a time when there are growing concerns in Washington about the size of the U.S. merchant marine and whether there are enough qualified mariners to operate both commercial and government-controlled vessels in case of a major military situation.
The size of the U.S.-flagged deep-sea fleet has dramatically decreased over the years, dropping from about 1,100 oceangoing vessels in 1950 to fewer than 200 today. This reduction has also cut down the number of experienced mariners available to support the country’s strategic sealift fleet during wartime or national emergencies.
Suozzi, whose district includes the U.S. Merchant Marine Academy at Kings Point and Webb Institute, highlighted that the proposal acknowledges the unique challenges faced by Americans who work at sea.
“America’s economic and national security rely on a robust maritime industry with skilled mariners to operate our ships,” Suozzi explained. “This bipartisan bill recognizes the sacrifices that mariners make in joining such a demanding profession by providing targeted tax relief through the extension of the foreign earned income exclusion to this vital workforce.”
The proposal has received backing from various maritime labor and industry groups, including the Marine Engineers’ Beneficial Association and the American Maritime Congress.
MEBA President Adam Vokac described the issues of mariner recruitment and retention as “one of the most urgent national security vulnerabilities facing the maritime industry today.”
“The American Mariner Tax Fairness Act simply extends the same treatment already given to other Americans working abroad to mariners sailing in international waters, aligning us with how other major maritime nations treat their seafarers,” Vokac stated.
American Maritime Congress Executive Director Elizabeth O’Connor mentioned that the legislation would help alleviate the mariner shortage while supporting the U.S.-flagged fleet and national security.
This bill is part of a growing movement in Congress aimed at revitalizing the U.S. maritime sector, as there are increasing concerns regarding the country’s limited commercial fleet, shipbuilding capacity, and available qualified merchant mariners.