[Congressional Record Volume 153, Number 33 (Tuesday, February 27, 2007)]
[Senate]
[Pages S2275-S2276]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself and Mr. Kennedy):
  S. 687. A bill to amend the Internal Revenue Code of 1986 to provide 
a business credit against income for the purchase of fishing safety 
equipment; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today to introduce the Commercial 
Fishermen Safety Act of 2007, a bill to help fishermen purchase the 
life-saving safety equipment they need to survive when disaster 
strikes. I am pleased to be joined by my colleague from Massachusetts, 
Senator Kennedy, in introducing this legislation.
  Everyday, members of our fishing communities struggle to cope with 
the pressures of running a small business, complying with burdensome 
regulations, and maintaining their vessels and equipment. Added to 
these challenges are the dangers associated with fishing.
  Year-in and year-out, commercial fishing ranks among the Nation's 
most dangerous occupations. Last August, when the Bureau of Labor 
Statistics released the most recent National Census of Fatal 
Occupational Injuries, fishing was the most dangerous occupation. While 
the national rate of occupational-related fatalities dropped by 1 
percent in 2005, I am saddened to say that the fishing community saw an 
increase of almost 14 percent from the previous year. I have introducd 
similar measures in previous sessions of Congress, but these tragic 
statistics illustrate why this piece of legislation is absolutely 
needed right now.
  And as we know, these statistics have a very real face to them. And 
sadly, the New England fishing community is certainly no stranger to 
the pain and loss of their own.
  Last November, the small fishing community of Port Clyde saw the 
tragic loss of one their own. The Taylor Emily, a 48-foot fishing boat, 
capsized and sank about 80 miles east of Portland, ME. Tragically, 
long-time fisherman Jim Weaver perished in this incident. Another 
fisherman aboard the boat, Christopher Yattaw, was saved when the 
Taylor Emily sank. Chris treaded the frigid waters for almost an hour, 
but finally, the boat's life raft inflated. Almost 8 hours later, Chris 
was rescued from the life raft by a passing fishing vessel. This 
incident could have been even more tragic if the critical live-saving 
equipment had not been aboard.
  Coast Guard regulations require all fishing vessels to carry safety 
equipment. The requirements vary depending on factors such as the size 
of the vessel, the temperature of the water, and the distance the 
vessel travels from shore to fish. Required equipment can include a 
life raft that automatically inflates and floats free, should the 
vessel sink. This is what saved Christopher Yattaw's life. Other live-
saving equipment includes: personal flotation devices or immersion 
suits which help protect fishermen from exposure and increase buoyancy; 
EPIRBs, which relay a downed vessel's position to Coast Guard Search 
and Rescue Personnel; visual distress signals; and fire extinguishers. 
When an emergency arises, safety equipment is priceless. At all other 
times, the cost of purchasing or maintaining this equipment must 
compete with other expenses such as loan payments, fuel, wages, 
maintenance, and insurance.
  The Commercial Fishermen Safety Act of 2007 provides a tax credit 
equal to 75 percent of the amount paid by fishermen to purchase or 
maintain required safety equipment. The tax credit is capped at $1,500. 
Items such as EPIRBs and immersion suits cost hundreds of dollars, 
while life rafts can reach into the thousands. The tax credit will make 
life-saving equipment more affordable for more fishermen, who currently 
face limited options under the Federal tax code.
  We have seen far too many tragedies in this occupation. Please, let 
us support fishermen who are trying to prepare in case disaster 
strikes. Safety equipment saves lives. By providing a tax credit for 
the purchase of safety equipment, Congress can help ensure that 
fishermen have a better chance of returning home each and every time 
they head out to sea.
  I ask unanimous consent that the text of the bill be put in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 687

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commercial Fishermen Safety 
     Act of 2007''.

     SEC. 2. CREDIT FOR PURCHASE OF FISHING SAFETY EQUIPMENT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business-related credits) is amended by adding at the end the 
     following new section:

     ``SEC. 45O. FISHING SAFETY EQUIPMENT CREDIT.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible taxpayer, the fishing safety equipment 
     credit determined under this section for the taxable year is 
     75 percent of the amount of qualified fishing safety 
     equipment expenses paid or incurred by the taxpayer during 
     the taxable year.
       ``(b) Limitation on Maximum Credit.--The credit allowed 
     under subsection (a) with respect to a taxpayer for the 
     taxable year shall not exceed $1,500.
       ``(c) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means a taxpayer engaged in a 
     fishing business.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Fishing business.--The term `fishing business' means 
     the conduct of commercial fishing as defined in section 3 of 
     the Magnuson-Stevens Fishery Conservation and Management Act 
     (16 U.S.C. 1802).
       ``(2) Qualified fishing safety equipment expenses.--
       ``(A) In general.--The term `qualified fishing safety 
     equipment expenses' means an amount paid or incurred for 
     fishing safety equipment for use by the taxpayer in 
     connection with a fishing business.
       ``(B) Fishing safety equipment.--The term `fishing safety 
     equipment' means--
       ``(i) lifesaving equipment required to be carried by a 
     vessel under section 4502 of title 46, United States Code, 
     and
       ``(ii) any maintenance of such equipment required under 
     such section.
       ``(e) Special Rules.--
       ``(1) In general.--Rules similar to the rules of 
     subsections (c), (d), and (e) of section 52 shall apply for 
     purposes of this section.
       ``(2) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 or 
     subsection (m) or (o) of section 414 shall be treated as one 
     person for purposes of subsection (a).
       ``(f) Denial of Double Benefit.--No deduction shall be 
     allowed under this chapter (other than a credit under this 
     section) for any amount taken into account in determining the 
     credit under this section.
       ``(g) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to any 
     equipment, the basis of such equipment shall be reduced by 
     the amount of the credit so allowed.''.
       (b) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986 
     (relating to general business credit) is amended by striking 
     ``plus'' at the end of paragraph (30), by striking the period 
     at the end of paragraph (31) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(32) the fishing safety equipment credit determined under 
     section 45O(a).''.
       (2) Subsection (a) of section 1016 of such Code is amended 
     by striking ``and'' at the

[[Page S2276]]

     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(38) in the case of equipment with respect to which a 
     credit was allowed under section 45O, to the extent provided 
     in section 45O(g).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 45O. Fishing safety equipment credit.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______