I.R.C. § 1358(a) Qualifying Shipping Activities —
For purposes of this chapter, the qualifying shipping activities of an electing
corporation shall be treated as a separate trade or business activity distinct from
all other activities conducted by such corporation.
I.R.C. § 1358(b) Exclusion Of Credits Or Deductions
I.R.C. § 1358(b)(1) —
No deduction shall be allowed against the notional shipping income of an electing
corporation, and no credit shall be allowed against the tax imposed by section 1352(2).
I.R.C. § 1358(b)(2) —
No deduction shall be allowed for any net operating loss attributable to the qualifying
shipping activities of any person to the extent that such loss is carried forward
by such person from a taxable year preceding the first taxable year for which such
person was an electing corporation.
I.R.C. § 1358(c) Transactions Not At Arm's Length —
Section 482 applies in accordance with this subsection to a transaction or series
of transactions—
I.R.C. § 1358(c)(1) —
as between an electing corporation and another person, or
I.R.C. § 1358(c)(2) —
as between a person's qualifying shipping activities and other activities carried
on by it.
(Added by Pub. L. 108-357, title II, Sec. 248(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(188)-(189), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
2018 — Subsec. (b)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(188), amended par. (1) by substituting ‘‘section 1352(2)’’
for ‘‘section 1352(a)(2)’’
Subsec. (c)(2). Pub. L. 115-141, Div. U, Sec. 401(a)(189), amended par. (2) by substituting “a person's” for “an
person's”.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(188)-(189), effective March 23, 2018.
EFFECTIVE DATE
Effective for taxable years beginning after the date of the enactment of this Act
[Oct. 22, 2004].
