American Mariner Tax Fairness Act

Section 911(d) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively, and by inserting after paragraph (4) the following new paragraph:

In the case of an individual who is a United States merchant mariner—

(i) notwithstanding paragraph (1), such individual shall be treated as a qualified individual with respect to the days described in subparagraph (B)(i)(II) during which such individual was actively employed on a qualifying vessel while such vessel was used in the United States foreign trade, and in applying subsections (b)(2)(A), (c)(1)(B)(ii), and (c)(2)(A)(ii) with respect to such individual, only such days shall be taken into account, and

(ii) notwithstanding subsection (b)(1)(A), any earned income received by such individual which is attributable to such employment with respect to such days shall (subject to subsection (b)(1)(B)) be treated as foreign earned income.

For purposes of this paragraph—

The term United States merchant mariner means any individual who—

(I) is a citizen or resident of the United States, and

(II) during any period of 12 consecutive months, is actively employed on a qualifying vessel, while such vessel is used in the United States foreign trade, during at least 90 full days in such period.

The term qualifying vessel means a self-propelled (or a combination self-propelled and non-self-propelled) United States flag vessel of not less than 6,000 deadweight tons used exclusively in the United States foreign trade.

The term United States foreign trade has the meaning given such term by section 1355(a)(7) (determined by inserting (or a possession thereof) after United States).

The term United States flag vessel has the meaning given such term by section 1355(a)(5).

(1) Section 911(f)(1) of such Code is amended by striking subsection (d)(6) and inserting subsection (d)(7).

(2) Section 1411(d)(2) of such Code is amended by striking section 911(d)(6) and inserting section 911(d)(7).

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.