I.R.C. § 1353(a) In General —
For purposes of this subchapter, the notional shipping income of an electing corporation
shall be the sum of the amounts determined under subsection (b) for each qualifying
vessel operated by such electing corporation.
I.R.C. § 1353(b) Amounts
I.R.C. § 1353(b)(1) In General —
For purposes of subsection (a), the amount of notional shipping income of an electing
corporation for each qualifying vessel for the taxable year shall equal the product
of—
I.R.C. § 1353(b)(1)(A) —
the daily notional shipping income, and
I.R.C. § 1353(b)(1)(B) —
the number of days during the taxable year that the electing corporation operated
such vessel as a qualifying vessel in United States foreign trade.
I.R.C. § 1353(b)(2) Treatment Of Vessels The Income From Which Is Not Otherwise Subject To Tax —
In the case of a qualifying vessel any of the income from which is not included
in gross income by reason of section 883 or otherwise, the amount of notional shipping income from such vessel for the taxable
year shall be the amount which bears the same ratio to such shipping income
(determined without regard to this paragraph) as the gross income from the operation
of such vessel in the United States foreign trade bears to the sum of such gross
income and the income so excluded.
I.R.C. § 1353(c) Daily Notional Shipping Income —
For purposes of subsection (b), the daily notional shipping income from the operation
of a qualifying vessel is—
I.R.C. § 1353(c)(1) —
40 cents for each 100 tons of so much of the net tonnage of the vessel as does not
exceed 25,000 net tons, and
I.R.C. § 1353(c)(2) —
20 cents for each 100 tons of so much of the net tonnage of the vessel as exceeds
25,000 net tons.
I.R.C. § 1353(d) Multiple Operators Of Vessel —
If for any period 2 or more persons are operators of a qualifying vessel, the notional
shipping income from the operation of such vessel for such period shall be allocated
among such persons on the basis of their respective ownership, charter, and operating
agreement interests in such vessel or on such other basis as the Secretary may prescribe
by regulations.
(Added by Pub. L. 108-357, title II, Sec. 248(a), Oct. 22, 2004, 118 Stat. 1418; amended by Pub. L. 109-135, title IV, Sec. 403(g)(1)(A), Dec. 21, 2005, 119 Stat. 2577.)
BACKGROUND NOTES
AMENDMENTS
2005 — Subsec. (d). Pub. L. 109-135, Sec. 403(g)(1)(A), amended subsec. (d) by substituting “ownership, charter, and operating agreement
interests” for “ownership and charter interests”.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 403(g)(1)(A) of Pub. L. 109-135 effective as if included in the provisions of the American Jobs Creation Act of 2004
[Pub. L. 109-357, Sec. 248] to which it relates.
EFFECTIVE DATE
Effective for taxable years beginning after the date of the enactment of this Act
[Oct. 22, 2004.]
