Us Code § 1356 - Qualifying shipping activities
Full text of Us Code United States Code § 1356 — Qualifying shipping activities, with citation guidance and answers to common questions.
§ 1356. Qualifying shipping activities
(a) Qualifying shipping activities
For purposes of this subchapter, the term "qualifying shipping activities" means—
(1) core qualifying activities,
(2) qualifying secondary activities, and
(3) qualifying incidental activities.
(b) Core qualifying activities
For purposes of this subchapter, the term "core qualifying activities" means activities in operating qualifying vessels in United States foreign trade.
(c) Qualifying secondary activities
For purposes of this section—
(1) In general
The term "qualifying secondary activities" means secondary activities but only to the extent that, without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 20 percent of the gross income derived by the corporation from its core qualifying activities.
(2) Secondary activities
The term "secondary activities" means—
(A) the active management or operation of vessels other than qualifying vessels in the United States foreign trade,
(B) the provision of vessel, barge, container, or cargo-related facilities or services to any person,
(C) other activities of the electing corporation and other members of its electing group that are an integral part of its business of operating qualifying vessels in United States foreign trade, including—
(i) ownership or operation of barges, containers, chassis, and other equipment that are the complement of, or used in connection with, a qualifying vessel in United States foreign trade,
(ii) the inland haulage of cargo shipped, or to be shipped, on qualifying vessels in United States foreign trade, and
(iii) the provision of terminal, maintenance, repair, logistical, or other vessel, barge, container, or cargo-related services that are an integral part of operating qualifying vessels in United States foreign trade, and
(D) such other activities as may be prescribed by the Secretary pursuant to regulations.
Such term shall not include any core qualifying activities.
(d) Qualifying incidental activities
For purposes of this section, the term "qualified incidental activities" means shipping-related activities if—
(1) they are incidental to the corporation's core qualifying activities,
(2) they are not qualifying secondary activities, and
(3) without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 0.1 percent of the corporation's gross income from its core qualifying activities.
(e) Application of gross income tests in case of electing group
In the case of an electing group, subsections (c)(1) and (d)(3) shall be applied as if such group were 1 entity, and the limitations under such subsections shall be allocated among the corporations in such group.
(Added Pub. L. 108–357, title II, §248(a), Oct. 22, 2004, 118 Stat. 1454; amended Pub. L. 109–135, title IV, §403(g)(3), Dec. 21, 2005, 119 Stat. 2624.)
Editorial Notes
Amendments
2005—Subsec. (c)(2). Pub. L. 109–135, §403(g)(3)(B), inserted concluding provisions.
Subsec. (c)(3). Pub. L. 109–135, §403(g)(3)(A), struck out heading and text of par. (3). Text read as follows:
"(A)
"(B)
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendments by Pub. L. 109–135 effective as if included in the provisions of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which they relate, see section 403(nn) of Pub. L. 109–135, set out as a note under section 26 of this title.
Effective Date
Section applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.
About This Section
26 U.S.C. § 1356 is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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