Tax Reform Report from National Marine Manufacturers Association (NMMA)

Analysis: Our 9 Takeaways from Tax Reform
Published on December 20, 2017
Congress is on track to send historic tax reform legislation to President Trump’s desk shortly. While no legislation of this magnitude is ever perfect, the final package includes a number of provisions that can be considered “wins” for marine manufacturers and the recreational boating industry. Some highlights of the tax package:

·     No new luxury tax on boat sales.

o  This was a priority for NMMA, and we were successful in ensuring no new luxury tax was ever considered.

 ·     Preservation of the 2nd home interest deduction for boats.

o  NMMA lobbied for parity with regard to the 2nd home interest deduction for boats. We didn’t want boats to be unfairly singled out and we were successful in this regard. The 2nd home interest deduction will remain without changes to boat eligibility. However, the tax reform package does lower the mortgage interest cap from $1 million to $750,000.

 ·     Lower corporate rate. 

o  NMMA lobbied for lower corporate rates to ensure manufacturers can remain globally competitive and spur capital investment to create jobs and sustain economic growth. The new tax reform package lowers the corporate rate from 35% to a flat 21%, and also repeals the corporate Alternative Minimum Tax (AMT).

·     Lower pass-through rate. 

o  Many of NMMA’s members are organized as pass-throughs. Under current law, pass-throughs are taxed up to 39.6%. Under the new package, pass-throughs would be taxed up to 37%, with a 20% deduction of qualified business income.

·     Lower individual rates.

o  The new tax reform package also lowers individual tax rates. This will ensure people have more take-home pay and disposable income. You can find a breakdown of those brackets here.

·     Doubling the standard deduction.

o  The tax reform package nearly doubles the standard deduction, raising it to $12,000 for individuals and $24,000 for joint filers.

·     Changes to the estate tax.

o  In order to protect family owned marine manufacturing plants, NMMA had asked for the estate tax to be repealed. While the final package falls short of full repeal, it does double the exemption from $5.6 million to $11.2 million. 

·     Allows for immediate expensing.

o  NMMA had asked for immediate expensing of capital investments so that businesses can continue to reinvest and grow. The final tax package allows for full and immediate expensing of short lived capital investments for five years. It also increases the Section 179 expensing cap from $500,000 to $1 million.

·     Preserves the R&D tax credit.

o  The R&D tax credit is important to many manufacturers in order to spur innovation and new technology. This credit is preserved under the reform package. 

There are bound to be a number of our readers who not only used Claiborne Young’s Cruising Guides for cruising information and advice, but who also knew Claiborne personally. With that in mind, Team Member, Winston Fowler, thinks you will enjoy reading Claiborne’s 2005 announcement of his guides going online (“live” as Claiborne describes) as Salty Southeast Cruisers’ Net. Can you hear his excitement? So typical of this larger-than-life personality.

From: C. S. Young
To: Salty Southeast Subscriber
Sent: Fri, Nov 18, 2005 4:45 pm
Subject: Salty SE Cruiser’s Net Goes LIVE

SALTY SOUTHEAST CRUISER’S NET GOES LIVE!!!!
Go to: http://www.CruisingGuide.com
Then, click on the “Cruiser’s Net” button along the left side of our home page

Watermark Publishing is proud to announce the genesis of what may turn out to be the most important new service to the Southeastern USA cruising community for many a year. And, best of all, it’s FREE, with nothing to subscribe to or join!
As those of you who have been on the Salty Southeast mailing list already know, we have been soliciting cruising news for a new “Salty Southeast Cruiser’s Net.” By this means, the cruising community can exchange information in real time about what’s changed, new, different, alarming or just plain exciting, on ALL the coastal waters from North Carolina to New Orleans.

NOTE: The enclosed links are no longer valid.

We have already received a wonderful selection of cruising news, ranging from changes in channels and aids to navigation, to marinas that might be charging a wee bit too much for their dockage. And, what’s really great, is that all this info is brought to you by those who know it best, namely, your fellow cruisers who have just traversed the waters you will soon be visiting.
Some of this data will be quite IMPORTANT to captains making their way south on the Atlantic ICW, and we urge you to check out the cruiser’s net at your earliest opportunity.
You will find the Salty SE Cruiser’s net divided into “North Carolina,” “South Carolina – Georgia,” “Eastern Florida” (Fernandina Beach to Miami), “Florida Keys,” “Western Florida” (Cape Sable to Carrabelle), “Northern Gulf” and “Bahamas” sub-sections.
Initially, you will find the “North Carolina,” “South Carolina – Georgia,” “Eastern Florida” and “Florida Keys” sections heavy with news. This is to be expected, as we have been hearing from the “snowbirds” as they wend their way south.
Of course, for this concept to work, WE NEED TO CONTINUE RECEIVING A STREAM OF NEWS FROM ALL CRUISERS, not just snowbirds, but also those who live and cruise weekly (or daily) on their home waters.
So, without further ado, we invite one and all to go to http://www.CruisingGuide.com, and click on the “Cruiser’s Net” button along the left side of hour home page.
PLEASE let us know what you think of the new Salty SE Cruiser’s Net, and PLEASE keep that great cruising news coming. We look forward to receiving your e-mails at opcom@cruisingguide.com.
Good luck and good cruising!

Claiborne Young
Watermark Publishing
opcom@cruisingguide.com
http://www.CruisingGuide.com