A bipartisan group of House lawmakers has introduced legislation that would allow qualifying U.S. merchant mariners working aboard U.S.-flag vessels in international trade to exclude a portion of their income from federal taxation.
The American Mariner Tax Fairness Act, introduced last week by Rep. Brian Fitzpatrick, R-Pa., would extend the existing foreign earned income exclusion to U.S. mariners who spend at least 90 full days during a 12-month period working aboard qualifying U.S.-flag vessels engaged in foreign trade.
Under the bill, income earned during qualifying periods of service would be treated as foreign earned income for federal tax purposes. The foreign earned income exclusion allows eligible taxpayers to exclude up to $132,900 in income from federal taxation for tax year 2026, although the amount available to an individual mariner would depend on the length of qualifying service and other provisions of the tax code.
The legislation defines a qualifying vessel as a U.S.-flag vessel of at least 6,000 deadweight tons used exclusively in U.S. foreign trade.
Fitzpatrick introduced the bill with Reps. Tom Suozzi, D-N.Y.; Nicole Malliotakis, R-N.Y.; and Brendan Boyle, D-Pa. The lawmakers framed the legislation as an effort to improve recruitment and retention in the U.S. merchant marine amid longstanding concerns about having enough credentialed mariners to crew the nation’s commercial and military sealift fleets.
“America’s maritime strength depends first on the men and women who crew our ships,” Fitzpatrick said in a statement. “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 proposal would effectively create a special pathway for qualifying merchant mariners to use a tax benefit already available to Americans working abroad. Under existing law, taxpayers generally must establish a foreign tax home and meet either a “bona fide residence test” or a “physical presence test,” the latter requiring presence in foreign countries for at least 330 full days during a 12-month period. Time spent in international waters does not count toward that requirement, according to the IRS. The proposed legislation would create a separate pathway for qualifying U.S. merchant mariners, allowing them to access the foreign earned income exclusion based on qualifying days at sea.
The legislation has received support from maritime labor and industry groups.
“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,” said Adam Vokac, president of the Marine Engineers’ Beneficial Association (MEBA). “The American Mariner Tax Fairness Act simply extends the same treatment already given to other Americans working abroad to mariners sailing in international waters.”
Elizabeth O’Connor, executive director of the American Maritime Congress, said the proposed tax relief could help combat the mariner shortage while supporting the U.S.-flag fleet and national security.
The lawmakers noted that the U.S.-flag deep-sea fleet has declined from roughly 1,100 oceangoing vessels in 1950 to fewer than 200 today. Federal maritime readiness assessments have repeatedly identified mariner availability as a concern, particularly because the commercial maritime workforce provides the pool of mariners needed to crew government sealift vessels during national emergencies.
If enacted, the changes would apply to taxable years beginning after the legislation becomes law.
