Boustany Leads Louisiana Delegation Letter Defending American Offshore Construction Companies

Press Release

Congressman Charles W. Boustany, Jr., MD, (R-Lafayette) led a letter to Treasury Secretary Jack Lew urging the Administration to pressure the government of Norway to make reforms to the U.S.-Norway Tax Treaty to protect U.S. offshore construction firms operating on the Outer Continental Shelf (OCS). Boustany was joined by his Louisiana colleagues Senator David Vitter (R-Metairie), Senator Bill Cassidy, MD, (R-Baton Rouge) Congressman Steve Scalise (R-Jefferson), Congressman John Fleming, MD, (R-Minden), Congressman Cedric Richmond (D-New Orleans), Congressman Ralph Abraham, MD, (R-Alto) and Congressman Garret Graves (R-Baton Rouge).

As a result of recent changes to Norway's tax laws, U.S. companies that provide offshore construction services on the OCS are at a significant competitive disadvantage to Norwegian-based competitors. In 2007, Norway began considering income earned on the OCS as eligible for tonnage tax benefits, subjecting Norwegian companies to virtually no tax. However, for American companies the OCS is considered part of the United States, and income earned on the OCS is not eligible for benefits.

The letter urges Secretary Lew to revise the U.S.-Norway Tax Treaty to include a withholding tax to offset the competitive disadvantage faced by U.S. companies.

Boustany said: "It's just not right that American companies operating off our shores could be at a significant tax disadvantage to one of the most socialist countries in the world. We need to fix this right away. Given a fair and level playing field, American businesses can compete with anyone on Earth. I'm proud to lead my colleagues to ensure our companies and the workers they employ are given a fair shot."

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