Elimination of Boat Mortgage Deduction - As you might have seen on the recent NBF E-Lert, the President's Tax Advisory panel has recommended changes to the Federal tax code that would eliminate the mortgage interest deduction for second residences, including boats. This deduction is now allowed for mortgages on boats that qualify as second homes, i.e. they contain sleeping, toilet and cooking facilities. The loss of this deduction would affect boat purchases by middle-class Americans and contribute to unemployment in the boat industry. NBF has partnered with the NMMA and others in opposition to this change. All are encouraged to contact the President and your Congressional representatives and urge them to oppose the Tax Advisory Panel's recommendation. You can reach the White House switchboard by calling (202) 456-1414
NBF Meeting - The recent meeting in Michigan City, Indiana, provided some interesting boating issues on the Great Lakes. One of these was pollution which originates from all the normal sources such as runoff, treatment plant overflow, etc. A major difference though, unlike the Chesapeake Bay, residents around Lake Michigan derive their drinking water from the Lake. Vessels are subjected to onboard sanitation inspections. One marina operator completed inspections of 5100 boats at nine harbors in the Chicago area to include all MSD facilities and the required shut off valves and seals. Also the Lakes undergo constant water sampling and under certain readings swimming is prohibited. One high E-coli reading, however, turned out to be from seagulls. Finally, aquatic nuisance species, such as the zebra mussels which encrust everything, are a huge problem on the Lakes. These species were introduced to the Great Lakes from ballast water on international shipping.
The US Coast Guard Auxiliary reported it saved 220 lives in Hurricane Katrina and provided assistance to the USCG and FEMA in the total rescue effort. The USCG received high marks all around for its early response and the huge number of lives saved.
Eminent Domain - It was resolved that NBF develop a position statement in support of limiting the Supreme Court holding as pronounced in Kelo v. New London, CT regarding the affect of imminent domain as it relates to limitations on boating access and facilities to be ratified by the Executive Committee. Congress would be asked to limit application of the Court's decision.
USACOE Municipal Works - Program - As previously reported in Chatter, the Dismal Swamp Canal may be shut down due to inadequate funding. Now we hear that the Ballard Locks in Washington State may be subjected to reduced operations for the same reasons. These locks connect important waterways for both recreational and commercial tour boats. Added to this is the lack of dredging on the ICW. We see no easy solution to this continuing problem, especially in the face of Congressional budget cuts and the huge expenditures by the Corps from Hurricane Katrina.
LNG Facilities - Greater Expansion - Beyond the Delaware, the Federal Energy Regulatory Commission (FERC) issued a Notice stating that, in cooperation with the U.S. Coast Guard, it has prepared a draft Environmental Impact Statement (EIS) for a liquefied natural gas (LNG) import terminal expansion proposed by Dominion Cove Point LNG, LP. Public meetings on this proposal will be conducted in Solomons, Maryland (December 7) and Waldorf, Maryland (December 8). Written comments should be submitted by December 21.
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