A bipartisan group of House lawmakers has introduced legislation that would extend the federal foreign earned income exclusion to qualifying U.S. merchant mariners working aboard U.S.-flag vessels in international trade.
Rep. Brian Fitzpatrick, R-Pa., introduced the American Mariner Tax Fairness Act on Aug. 27 with Reps. Tom Suozzi, D-N.Y.; Nicole Malliotakis, R-N.Y.; and Brendan Boyle, D-Pa.
Under the bill, qualifying mariners who spend at least 90 days during a 12-month period working aboard eligible U.S.-flag vessels in foreign trade could exclude income earned during those periods from federal taxation. The proposal is intended to support recruitment and retention within the U.S. maritime workforce.
“America’s maritime strength depends first on the men and women who crew our ships,” Fitzpatrick said. “Our merchant mariners spend months away from their families doing demanding, essential work that keeps commerce moving and preserves a capability our nation cannot afford to lose.”
The number of vessels in the U.S.-flag deep-sea fleet has fallen from approximately 1,100 in 1950 to fewer than 200, according to Fitzpatrick’s office. Federal maritime readiness assessments have identified the availability of credentialed mariners as a continuing challenge for maintaining commercial shipping and military sealift capacity.
The proposed legislation would extend to eligible mariners a tax benefit already available to certain Americans working abroad, said Adam Vokac, president of the Marine Engineers’ Beneficial Association.
“Recruiting and retaining mariners is one of the most pressing national security vulnerabilities facing the maritime industry today, and this bill addresses it head-on,” Vokac said. “The American Mariner Tax Fairness Act simply extends the same treatment already given to other Americans working abroad to mariners sailing in international waters.”
The American Maritime Congress also endorsed the proposal.
“This legislation acknowledges the men and women who crew America’s oceangoing merchant fleet,” Elizabeth Bayly O’Connor, AMC executive director, said in a LinkedIn post. “U.S. Merchant Mariners spend months at a time away from their homes and families, sailing the vessels that move our commerce and that our military rely on to project and sustain forces overseas.”
“Our national security depends on having enough credentialed American mariners ready to crew these ships when the nation calls on them, and this bill is a meaningful step toward keeping that workforce strong,” O’Connor added.
Suozzi said the legislation recognizes the demands of maritime employment while supporting a workforce critical to economic and national security. Boyle said the tax change could help recruit and retain the next generation of U.S. mariners.
The exclusion would apply only to income earned during qualifying periods of service aboard eligible U.S.-flag vessels, according to the bill announcement.
