Tax Relief on the Horizon?

The National Marine Manufacturers Association (NMMA), which represents the United States' recreational boating industry, has announced its plans to lead a 71-member coalition in petitioning Congress for the extension of the net operating loss (NOL) carryback period from two to five years. The hope, the association argues, is that in doing so, Congress will "help businesses suffering from tough economic times."

An NOL is a period of time during which a company's expenses exceed its revenues, thus resulting in a negative taxable income. According to a press release from the NMMA, a company can currently opt to use its NOL to offset the taxes it owes on profits from the previous two years. It would like to see that period extended by three years. The rationale behind providing such a carryback period is simple: Businesses are required to pay taxes when they earn money, therefore, they are also are deserving of some form of tax relief if they begin to lose it.

"Congress has used NOL carryback relief in the past to help manufacturers, retailers, and companies across all sectors," NMMA president Thom Dammrich has explained. "We encourage legislators to use this tool again to enable these companies to retain jobs and avoid going out of business."

To that end, the association states that in the coming weeks, it (and its coalition partners) will meet with leaders in Congress and members of President-elect Obama's transition team to press for the extension. An extension aimed, as the NMMA puts it, at "ensur[ing] that the appropriate tax relief is enacted in a timely manner."

Clean Boating Act Now Official

You're looking at President George W. Bush signing the Clean Boating Act of 2008 yesterday. Joining him aboard Air Force One was Rep. Steven LaTourette (left) and Rep. Patrick Tiberi, both from Ohio. The bill, which was approved by Congress last week, protects more than 17 million American recreational boaters from confusing and in some cases unnecessary regulations that are more applicable to commercial vessels. (Visit BoatBlue as well as this post to get the full background details.)

White House photo: Chris Greenberg

Clean Boating Act Approved

Good news: Earlier this week both the House of Representatives and the Senate approved the Clean Boating Act, to prevent the Environmental Protection Agency (EPA) from instituting regulations that would result in hefty fines for recreational boaters of all kinds, even kayakers.

For 35 years recreational and commercial boats alike have been exempt from permits covering normal overboard water discharge—things like washdown and runoff water. But a few years ago, a few states sued to overturn the exemption because of ballast-water discharges releasing harmful species into local waters. They won in federal court, and as a result the EPA will be required to start enforcing permit regulations come September 30. (If you're interested in reading the permit proposals, click here.) Vessels less than 79 feet will be required to have one type of permit, while vessels 80 feet and larger will need a different permit. Unfortunately, those regulations don't distinguish recreational boats from commercial ones, even though ballast-tank-equipped vessels aren't the same as runabouts, sportfishermen, and yachts. (And yes, kayaks were included in the regulations—canoes and PWCs as well.)

Thankfully, several Congressmen and Congresswomen recognized this just didn't make sense and sponsored the Clean Boating Act bill. As Chuck Schumer, the senator from New York who cosponsored the bill, said to a group of boaters in the Finger Lakes, "It's time to toss this ill-advised regulation overboard."

Next step: getting President George Bush's signature. Considering he's an active boater, as is his father, here's hoping he picks up his pen soon.

To follow further developments and read more about how the bill and regulations came about, visit BoatBlue.

New Fees on the Horizon

If you don't think recreational boaters should be required to buy a pricey water-discharge permit from the federal government, now is a good time to let Washington know.

The Clean Water Act of 2008—a bill aimed to reverse a recent ruling that would force pleasure boaters to buy the same costly permits required of commercial freighters and tankers—is now stalled in Congress by one vote. Sen. Lisa Murkowski (R-Alaska) refused to pass the bill before the holiday weekend unless commerical fishing boats were also exempt.

If legislators fail to enact the measure before the summer recess in a few weeks, then starting on Oct. 1, you will have to buy a permit to discharge any kind of water—engine cooling water, even deck run-off—from your boat.

To let your voice be heard, send a message to Congress.