I.R.C. § 7518(a) Ceiling On Deposits
I.R.C. § 7518(a)(1) In General —
The amount deposited in a fund established under chapter 535 of title 46 of the
United States Code (hereinafter in this section referred to as a “capital construction
fund”) shall not exceed for any taxable year the sum of:
I.R.C. § 7518(a)(1)(A) —
that portion of the taxable income of the owner or lessee for such year (computed
as provided in chapter 1 but without regard to the carryback of any net operating
loss or net capital loss and without regard to this section) which is attributable
to the operation of the agreement vessels in the foreign or domestic commerce of
the United States or in the fisheries of the United States,
I.R.C. § 7518(a)(1)(B) —
the amount allowable as a deduction under section 167 for such year with respect to the agreement vessels,
I.R.C. § 7518(a)(1)(C) —
if the transaction is not taken into account for purposes of subparagraph (A), the net proceeds
(as defined in joint regulations) from—
I.R.C. § 7518(a)(1)(C)(i) —
the sale or other disposition of any agreement vessel, or
I.R.C. § 7518(a)(1)(C)(ii) —
insurance or indemnity attributable to any agreement vessel, and
I.R.C. § 7518(a)(1)(D) —
the receipts from the investment or reinvestment of amounts held in such fund.
I.R.C. § 7518(a)(2) Limitations On Deposits By Lessees —
In the case of a lessee, the maximum amount which may be deposited with respect
to an agreement vessel by reason of paragraph (1)(B) for any period shall be reduced by any amount which, under an agreement entered
into under chapter 535 of title 46, United States Code, the owner is required or
permitted to deposit for such period with respect to such vessel by reason of paragraph
(1)(B).
I.R.C. § 7518(a)(3) Certain Barges And Containers Included —
For purposes of paragraph (1), the term “agreement vessel” includes barges and containers which are
part of the complement of such vessel and which are provided for in the agreement.
I.R.C. § 7518(b) Requirements As To Investments
I.R.C. § 7518(b)(1) In General —
Amounts in any capital construction fund shall be kept in the depository or depositories
specified in the agreement and shall be subject to such trustee and other fiduciary
requirements as may be specified by the Secretary.
I.R.C. § 7518(b)(2) Limitation On Fund Investments —
Amounts in any capital construction fund may be invested only in interest-bearing
securities approved by the Secretary; except that, if such Secretary consents thereto,
an agreed percentage (not in excess of 60 percent) of the assets of the fund may
be invested in the stock of domestic corporations. Such stock must be currently fully
listed and registered on an exchange registered with the Securities and Exchange
Commission as a national securities exchange, and must be stock which would be acquired
by prudent men of discretion and intelligence in such matters who are seeking a
reasonable income and the preservation of their capital. If at any time the fair
market value of the stock in the fund is more than the agreed percentage of the assets
in the fund, any subsequent investment of amounts deposited in the fund, and any
subsequent withdrawal from the fund, shall be made in such a way as to tend to restore
the fund to a situation in
which the fair market value of the stock does not exceed such agreed
percentage.
I.R.C. § 7518(b)(3) Investment In Certain Preferred Stock Permitted —
For purposes of this subsection, if the common stock of a corporation meets the
requirements of this subsection and if the preferred stock of such corporation would
meet such requirements but for the fact that it cannot be listed and registered as
required because it is nonvoting stock, such preferred stock shall be treated as
meeting the requirements of this subsection.
I.R.C. § 7518(c) Nontaxability For Deposits
I.R.C. § 7518(c)(1) In General —
For purposes of this title—
I.R.C. § 7518(c)(1)(A) —
taxable income (determined without regard to this section and chapter 535 of title
46, United States Code) for the taxable year shall be reduced by an amount equal
to the amount deposited for the taxable year out of amounts referred
to in subsection (a)(1)(A),
I.R.C. § 7518(c)(1)(B) —
gain from a transaction referred to in subsection (a)(1)(C) shall not be taken into account if an amount equal to the net proceeds
(as defined in joint regulations) from such transaction is deposited in the fund,
I.R.C. § 7518(c)(1)(C) —
the earnings (including gains and losses)
from the investment and reinvestment of amounts held in the fund shall not be taken
into account,
I.R.C. § 7518(c)(1)(D) —
the earnings and profits (within the meaning of section 316)
of any corporation shall be determined without regard to this section and chapter
535 of title 46, United States Code, and
I.R.C. § 7518(c)(1)(E) —
in applying the tax imposed by section 531 (relating to the accumulated
earnings tax), amounts while held in the fund shall not be taken into account.
I.R.C. § 7518(c)(2) Only Qualified Deposits Eligible For Treatment —
Paragraph (1) shall apply with respect to any amount only if such amount is deposited in the fund
pursuant to the agreement and not later than the time provided in joint regulations.
I.R.C. § 7518(d) Establishment Of Accounts —
For purposes of this section—
I.R.C. § 7518(d)(1) In General —
Within a capital construction fund 3 accounts shall be maintained:
I.R.C. § 7518(d)(1)(A) —
the capital account,
I.R.C. § 7518(d)(1)(B) —
the capital gain account, and
I.R.C. § 7518(d)(1)(C) —
the ordinary income account.
I.R.C. § 7518(d)(2) Capital Account —
The capital account shall consist of—
I.R.C. § 7518(d)(2)(A) —
amounts referred to in subsection (a)(1)(B),
I.R.C. § 7518(d)(2)(B) —
amounts referred to in subsection (a)(1)(C) other than that portion thereof which represents gain not taken into account by
reason of subsection (c)(1)(B),
I.R.C. § 7518(d)(2)(D) —
interest income exempt from taxation under section 103.
I.R.C. § 7518(d)(3) Capital Gain Account —
The capital gain account shall consist of—
I.R.C. § 7518(d)(3)(A) —
amounts representing capital gains on assets held for more than 6 months and referred
to in subsection (a)(1)(C) or (a)(1)(D), reduced by
I.R.C. § 7518(d)(3)(B) —
amounts representing capital losses on assets held in the fund for more than 6 months.
I.R.C. § 7518(d)(4) Ordinary Income Account —
The ordinary income account shall consist of—
I.R.C. § 7518(d)(4)(A) —
amounts referred to in subsection (a)(1)(A),
I.R.C. § 7518(d)(4)(B)
I.R.C. § 7518(d)(4)(B)(i) —
amounts representing capital gains on assets held for 6 months or less and referred
to in subsection (a)(1)(C) or (a)(1)(D), reduced by
I.R.C. § 7518(d)(4)(B)(ii) —
amounts representing capital losses on assets held in the fund for 6 months or less,
I.R.C. § 7518(d)(4)(C) —
interest (not including any tax-exempt interest referred to in paragraph (2)(D)) and other ordinary income (not including any dividend referred to in subparagraph
(E)) received on assets held in the fund,
I.R.C. § 7518(d)(4)(D) —
ordinary income from a transaction described in subsection (a)(1)(C), and
I.R.C. § 7518(d)(4)(E) —
the portion of any dividend referred to in paragraph (2)(C) not taken into account under such paragraph.
I.R.C. § 7518(d)(5) Capital Losses Only Allowed To Offset Certain Gains —
Except on termination of a capital construction fund, capital losses referred to
in paragraph (3)(B) or in paragraph (4)(B)(ii) shall be allowed only as an offset to gains referred to in paragraph (3)(A) or (4)(B)(i), respectively.
I.R.C. § 7518(e) Purposes Of Qualified Withdrawals
I.R.C. § 7518(e)(1) In General —
A qualified withdrawal from the fund is one made in accordance with the terms of
the agreement but only if it is for:
I.R.C. § 7518(e)(1)(A) —
the acquisition, construction, or reconstruction of a qualified vessel,
I.R.C. § 7518(e)(1)(B) —
the acquisition, construction, or reconstruction of barges and containers which
are part of the complement of a qualified vessel, or
I.R.C. § 7518(e)(1)(C) —
the payment of the principal on indebtedness incurred in connection with the acquisition,
construction, or reconstruction of a qualified vessel or a barge or container which
is part of the complement of a qualified vessel.
Except to the extent provided in regulations prescribed
by the Secretary, subparagraph (B), and so much of subparagraph (C) as relates only to barges and containers, shall apply only with respect to barges
and containers constructed in the United States.
I.R.C. § 7518(e)(2) Penalty For Failing To Fulfill Any Substantial Obligation —
Under joint regulations, if the Secretary determines that any substantial obligation
under any agreement is not being fulfilled, he may, after notice and opportunity
for hearing to the person maintaining the fund, treat the entire fund or any portion
thereof as an amount withdrawn from the fund in a nonqualified withdrawal.
I.R.C. § 7518(f) Tax Treatment Of Qualified Withdrawals
I.R.C. § 7518(f)(1) Ordering Rule —
Any qualified withdrawal from a fund shall be treated—
I.R.C. § 7518(f)(1)(A) —
first as made out of the capital account,
I.R.C. § 7518(f)(1)(B) —
second as made out of the capital gain account, and
I.R.C. § 7518(f)(1)(C) —
third as made out of the ordinary income account.
I.R.C. § 7518(f)(2) Adjustment To Basis Of Vessel, Etc., Where Withdrawal From Ordinary Income Account —
If any portion of a qualified withdrawal for a vessel, barge, or container is made
out of the ordinary income account, the basis of such vessel, barge, or container
shall be reduced by an amount equal to such portion.
I.R.C. § 7518(f)(3) Adjustment To Basis Of Vessel, Etc., Where Withdrawal From Capital Gain Account —
If any portion of a qualified withdrawal for a vessel, barge, or container is made
out of the capital gain account, the basis of such vessel, barge, or container shall
be reduced by an amount equal to such portion.
I.R.C. § 7518(f)(4) Adjustment To Basis Of Vessels, Etc., Where Withdrawals Pay Principal On Debt —
If any portion of a qualified withdrawal to pay the principal on any indebtedness
is made out of the ordinary income account or the capital gain account, then an amount
equal to the aggregate reduction which would be required by paragraphs (2) and (3) if this were a qualified withdrawal for a purpose described in such paragraphs shall
be applied, in the order provided in joint regulations, to reduce the basis of vessels,
barges, and containers owned by the person maintaining the fund. Any amount of a
withdrawal remaining after the application of the preceding sentence shall be treated
as a nonqualified withdrawal.
I.R.C. § 7518(f)(5) Ordinary Income Recapture Of Basis Reduction —
If any property the basis of which was reduced under paragraph (2), (3), or (4) is disposed of, any gain realized on such disposition, to the extent it does not
exceed the aggregate reduction in the basis of such property under such paragraphs,
shall be treated as an amount referred to in subsection (g)(3)(A) which was withdrawn on the date of such disposition. Subject to such conditions
and requirements as may be provided in joint regulations, the preceding sentence
shall not apply to a disposition where there is a redeposit in an amount determined
under joint regulations which will, insofar as practicable, restore the fund to the
position it was in before the withdrawal.
I.R.C. § 7518(g) Tax Treatment Of Nonqualified Withdrawals
I.R.C. § 7518(g)(1) In General —
Except as provided in subsection (h), any withdrawal from a capital construction fund which is not a qualified withdrawal
shall be treated as a nonqualified withdrawal.
I.R.C. § 7518(g)(2) Ordering Rule —
Any nonqualified withdrawal from a fund shall be treated—
I.R.C. § 7518(g)(2)(A) —
first as made out of the ordinary income account,
I.R.C. § 7518(g)(2)(B) —
second as made out of the capital gain account, and
I.R.C. § 7518(g)(2)(C) —
third as made out of the capital account.
For purposes of this section, items withdrawn from any account shall be treated as
withdrawn on a first-in-first-out basis; except that (i) any nonqualified withdrawal
for research, development, and design expenses incident to new and advanced ship
design, machinery and equipment, and (ii) any amount treated as a nonqualified withdrawal
under the second sentence of subsection (f)(4), shall be treated as withdrawn on a last-in-first-out basis.
I.R.C. § 7518(g)(3) Operating Rules —
For purposes of this title—
I.R.C. § 7518(g)(3)(A) —
any amount referred to in paragraph (2)(A) shall be included in income as an item of ordinary income for the taxable year in
which the withdrawal is made,
I.R.C. § 7518(g)(3)(B) —
any amount referred to in paragraph (2)(B) shall be included in income for the taxable year in which the withdrawal is made
as an item of gain realized during such year from the disposition of an asset held
for more than 6 months, and
I.R.C. § 7518(g)(3)(C) —
for the period on or before the last date prescribed for payment of tax for the
taxable year in which this withdrawal is made—
I.R.C. § 7518(g)(3)(C)(ii) —
interest on the amount of the additional tax attributable to any item referred to
in subparagraph (A) or (B) shall be paid at the applicable rate (as defined in paragraph (4)) from the last date prescribed for payment of the tax for the taxable year for which
such item was deposited in the fund, and
I.R.C. § 7518(g)(3)(C)(iii) —
no interest shall be payable on amounts referred to in clauses (i) and (ii) of paragraph (2) or in the case of any nonqualified withdrawal arising from the application of the
recapture provision of section 606(5) of the Merchant Marine Act, 1936, as in effect on December 31, 1969.
I.R.C. § 7518(g)(4) Interest Rate —
For purposes of paragraph (3)(C)(ii), the applicable rate of interest for any nonqualified withdrawal shall be determined
and published jointly by the Secretary of the Treasury or his delegate and the applicable
Secretary and shall bear a relationship to 8 percent which the Secretaries determine
under joint regulations to be comparable to the relationship which the money rates
and investment yields for the calendar year immediately preceding the beginning of
the taxable year bear to the money rates and investment yields for the calendar year
1970.
I.R.C. § 7518(g)(5) Amount Not Withdrawn From Fund After 25 Years From Deposit Taxed As Nonqualified Withdrawal
I.R.C. § 7518(g)(5)(A) In General —
The applicable percentage of any amount which remains in a capital construction
fund at the close of the 26th, 27th, 28th, 29th, or 30th taxable year following the
taxable year for which such amount was deposited shall be treated as a nonqualified
withdrawal in accordance with the following table:
If the amount remains in the fund at the The applicable
close of the-- percentage is--
26th taxable year....................20 percent
27th taxable year....................40 percent
28th taxable year....................60 percent
29th taxable year....................80 percent
30th taxable year...................100 percent
I.R.C. § 7518(g)(5)(B) Earnings Treated As Deposits —
The earnings of any capital construction fund for any taxable year (other than net
gains) shall be treated for purposes of this paragraph as an amount deposited for
such taxable year.
I.R.C. § 7518(g)(5)(C) Amounts Committed Treated As Withdrawn —
For purposes of subparagraph (A), an amount shall not be treated as remaining in a capital construction fund at the
close of any taxable year to the extent there is a binding contract at the close
of such year for a qualified withdrawal of such amount with respect to an identified
item for which such withdrawal may be made.
I.R.C. § 7518(g)(5)(D) Authority To Treat Excess Funds As Withdrawn —
If the Secretary determines that the balance in any capital construction fund exceeds
the amount which is appropriate to meet the vessel construction program objectives
of the person who established such fund, the amount of such excess shall be treated
as a nonqualified withdrawal under subparagraph (A) unless such person develops appropriate program objectives within 3 years to dissipate
such excess.
I.R.C. § 7518(g)(5)(E) Amounts In Fund On January 1, 1987 —
For purposes of this paragraph, all amounts in a capital construction fund on January
1, 1987, shall be treated as deposited in such fund on such date.
I.R.C. § 7518(g)(6) Nonqualified Withdrawals Taxed At Highest Marginal Rate
I.R.C. § 7518(g)(6)(A) In General —
In the case of any taxable year for which there is a nonqualified withdrawal
(including any amount so treated under paragraph (5)), the tax imposed by
chapter 1 shall be determined—
I.R.C. § 7518(g)(6)(A)(i) —
by excluding such withdrawal from gross income, and
I.R.C. § 7518(g)(6)(A)(ii) —
by increasing the tax imposed by chapter 1 by the product of the amount of such
withdrawal and the highest rate of tax specified in section 1
(section 11 in the case of a corporation).
In the case of a taxpayer other than a corporation, with respect to the portion of
any nonqualified withdrawal made out of the capital gain account during a taxable
year to which section 1(h) applies, the rate of tax taken into account under the preceding sentence shall not
exceed 20 percent.
I.R.C. § 7518(g)(6)(B) Tax Benefit Rule —
If any portion of a nonqualified withdrawal is properly attributable to deposits
(other than earnings on deposits) made by the taxpayer in any taxable year which
did not reduce the taxpayer's liability for tax under chapter 1 for any taxable year
preceding the taxable year in which such withdrawal occurs—
I.R.C. § 7518(g)(6)(B)(i) —
such portion shall not be taken into account under subparagraph (A), and
I.R.C. § 7518(g)(6)(B)(ii) —
an amount equal to such portion shall be treated as allowed as a deduction under
section 172 for the taxable year in which such withdrawal occurs.
I.R.C. § 7518(g)(6)(C) Coordination With Deduction For Net Operating Losses —
Any nonqualified withdrawal excluded from gross income under subparagraph (A)
shall be excluded in determining taxable income under section 172(b)(2).
I.R.C. § 7518(h) Certain Corporate Reorganizations And Changes In Partnerships —
Under joint regulations—
I.R.C. § 7518(h)(1) —
a transfer of a fund from one person to another person in a transaction to which
section 381 applies may be treated as if such transaction did not constitute a nonqualified
withdrawal, and
I.R.C. § 7518(h)(2) —
a similar rule shall be applied in the case of a continuation of a partnership.
I.R.C. § 7518(i) Definitions —
For purposes of this section, any term defined in chapter 535 of title 46, United
States Code, which is also used in this section
(including the definition of “Secretary”) shall have the meaning given
such term by such chapter as in effect on the date of the enactment of this section.
(Added by Pub. L. 99-514, title II, Sec. 261(b), Oct. 22, 1986, 100 Stat. 2208, and amended by Pub. L. 100-647, title I, Sec. 1002(m)(1), 1018(u)(23), Nov. 10, 1988, 102 Stat. 3382, 3591; Pub. L. 101-508, title XI, Sec. 11101(d)(7)(A), Nov. 5, 1990, 104 Stat. 1388-405; Pub. L. 105-34, title III, Sec. 311(c)(2), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-27, title III, Sec. 301(a)(2), May 28, 2003, 117 Stat. 752; Pub. L. 109-304, Sec. 17(e)(6), Oct. 6, 2006, 120 Stat. 1485; Pub. L. 112-240, title I, Sec. 102(c)(1)(D), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(117), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-97, title I, Sec. 13001(b)(2)(Q), (b)(7), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(352)(A)-(B), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 -
Subsec. (i). Pub. L. 115-141, Div. U, Sec. 401(a)(352)(A), amended subpar. (i) by substituting “chapter
535 of title 46, United States Code,” for “section 607(k)
of the Merchant Marine Act, 1936”.
Subsec. (i). Pub. L. 115-141, Div. U, Sec. 401(a)(352)(B), amended subpar. (i) by substituting “such chapter”
for “such section 607(k)”.
2017 - Subsec. (g)(6)(A). Pub. L. 115-97, Sec. 13001(b)(2)(Q), amended subpar. (A) by striking “or 1201(a)”.
Subsec. (g)(6)(A). Pub. L. 115-97, Sec. 13001(b)(7), amended subpar. (A) by substituting “In the case of a taxpayer
other than a corporation, with respect to the portion” for “With respect
to the portion” and by striking ‘‘(34 percent in the case of a corporation)’’.
2014 - Subsec. (g)(4). Pub. L. 113-295, Div. A, Sec. 221(a)(117), amended par. (4) by substituting “any nonqualified
withdrawal shall be determined” for “any nonqualified withdrawal—
(A) made in a taxable year beginning in 1970 or 1971 is 8 percent, or (B) made in
a taxable year beginning after 1971, shall be determined”.
2013 - Subsec. (g)(6)(A). Pub. L. 112-240, Sec. 102(c)(1)(D), amended subpar. (A) by substituting “15 percent” for “20 percent”
in the second sentence.
2006 - Subsec. (a)(1). Pub. L. 109-304, Sec. 17(e)(6)(A), amended par. (1) by substituting “chapter 535 of title 46 of the United States
Code” for “section 607 of the Merchant Marine Act, 1936”.
Subsec. (a)(2). Pub. L. 109-304, Sec. 17(e)(6)(B), amended par. (2) by substituting “chapter 535 of title 46, United States Code”
for “section 607 of the Merchant Marine Act, 1936”.
Subsec. (c)(1)(A). Pub. L. 109-304, Sec. 17(e)(6)(B), amended subpar. (A) by substituting “chapter 535 of title 46, United States
Code” for “section 607 of the Merchant Marine Act, 1936”.
Subsec. (c)(1)(D). Pub. L. 109-304, Sec. 17(e)(6)(B), amended subpar. (D) by substituting “chapter 535 of title 46, United States
Code” for “section 607 of the Merchant Marine Act, 1936”.
Subsec. (g)(3)(C)(iii). Pub. L. 109-304, Sec. 17(e)(6)(C), amended clause (iii) by substituting “Merchant Marine Act, 1936,”
for “Merchant Marine Act of 1936”.
2003 - Subsec. (g)(6)(A). Pub. L. 108-27, Sec. 301(a)(2), substituted “15 percent” for “20 percent”
in the second sentence.
1997 - Subsec. (g)(6)(A). Pub. L. 105-34, Sec. 311(c)(2), substituted “20 percent” for “28 percent”
in the second sentence.
1990 - Subsec. (g)(6)(A). Pub. L. 101-508 substituted “section
(1)(h)” for “section 1(j)” in last sentence.
1988 - Subsec. (g)(1). Pub. L. 100-647, Sec. 1018(u)(23), substituted “not a qualified withdrawal” for “not qualified withdrawal”.
Subsec. (g)(6)(A). Pub. L. 100-647, Sec. 1002(m)(1), substituted “section 1(j)” for “section 1(i)”.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(352)(A)-(B), effective March 23, 2018.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Sec. 13001(b)(2)(Q) and (b)(7), effective for taxable years beginning after December
31, 2017.
EFFECTIVE DATE OF 2014 AMENDMENT
Amendment by Pub. L. 113-295, Div. A, Sec. 221(a)(117), effective on the date of the enactment of this Act [Enacted:
Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2)
SAVINGS PROVISION.—If—
“(A)
any provision amended or repealed by the amendments made by this section applied to—
“(i)
any transaction occurring before the date of the enactment of this Act [Enacted: Dec.
19, 2014],
“(ii)
any property acquired before such date of enactment, or
“(iii)
any item of income, loss, deduction, or credit taken into account before such date
of enactment, and
“(B)
the treatment of such transaction, property, or item under such provision would (without
regard to the amendments or repeals made by this section)
affect the liability for tax for periods ending after date of enactment, nothing in
the amendments or repeals made by this section shall be construed to affect the treatment
of such transaction, property, or item for purposes of determining liability for tax
for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2013 AMENDMENT
Amendment by Sec. 102(c)(1)(D) of Pub. L. 112-240 effective for taxable years beginning after December 31, 2012.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 17(e)(6) of Pub. L. 109-304 effective on the date of the enactment of this Act [Enacted: Oct. 6, 2006].
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Sec. 301(a)(2)of Pub. L. 108-27 effective for taxable years beginning after December 31, 2003.
Section 302(f)(2) of Pub. L. 108-27 provided that:
“(2) Regulated Investment Companies and Real Estate Investment Trusts.--In the
case of a regulated investment company or a real estate investment trust, the amendments
made by this section shall apply to taxable years ending after December 31, 2002;
except that dividends received by such a company or trust on or before such date shall
not be treated as qualified dividend income (as defined in section 1(h)(11) of the Internal Revenue Code of 1986, as added by this Act).”
Section 303 (Sunset of Title) of Pub. L. 108-27, as amended by Sec. 102 of Pub. L. 109-222 and Sec. 102 of Pub. L. 111-312, provided that:
“All provisions of, and amendments made by, this title shall not apply to taxable
years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such provisions and
amendments had never been enacted.”
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 311(c)(2) of Pub. L. 105-34 effective for taxable years ending after May 6, 1997. Sec. 311(e) of Pub. L. 105-34 provided an election which is set out in section 1 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective for taxable years beginning after Dec. 31, 1990, see section 11101(e) of
Pub. L. 101-508, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE
Section 261(g) of Pub. L. 99-514 provided that: “The amendments made by this section (enacting this section
and amending section 26 of this title and section 1177 of Title 46, Appendix, Shipping)
shall apply to taxable years beginning after December 31, 1986.”
MERCHANT MARINE CAPITAL CONSTRUCTION FUNDS
Section 261(a) of Pub. L. 99-514 provided that: “The purpose of this section (enacting this section, amending
section 26 of this title and section 1177 of Title 46, Appendix, and enacting provisions
set out as a note above) is to coordinate the application of the Internal Revenue Code of 1986 with the capital construction program under the Merchant Marine Act, 1936
(46 App. U.S.C. 1101 et seq.).”
