I 

111TH CONGRESS 

1ST SESSION H. R. 3049 

To amend the Internal Revenue Code of 1986 to modify the application 

of the tonnage tax on vessels operating in the dual United States domestic and foreign trades, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2009 

Mr. BLUMENAUER (for himself, Mr. HERGER, Mr. HIGGINS, Ms. HIRONO, Mr. 

ABERCROMBIE, Mr. THOMPSON of California, Ms. LINDA T. SA ́NCHEZ of 

California, Mr. PASCRELL, and Ms. RICHARDSON) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the application of the tonnage tax on vessels operating 

in the dual United States domestic and foreign trades, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. MODIFICATION OF THE APPLICATION OF THE 

2 TONNAGE TAX ON VESSELS OPERATING IN 

3 THE DUAL UNITED STATES DOMESTIC AND 

4 FOREIGN TRADES. 

5 (a) IN GENERAL.—Subsection (f) of section 1355 of 

6 the Internal Revenue Code of 1986 (relating to definitions 

7 and special rules) is amended to read as follows: 

8 ‘‘(f) EFFECT OF OPERATING A QUALIFYING VESSEL

9 IN THE DUAL UNITED STATES DOMESTIC AND FOREIGN

10 TRADES.—For purposes of this subchapter— 

11 ‘‘(1) an electing corporation shall be treated as 

12 continuing to use a qualifying vessel in the United 

13 States foreign trade during any period of use in the 

14 United States domestic trade, and 

15 ‘‘(2) gross income from such United States do16 mestic trade shall not be excluded under section 

17 1357(a), but shall not be taken into account for pur18 poses of section 1353(b)(1)(B) or for purposes of 

19 section 1356 in connection with the application of 

20 section 1357 or 1358.’’. 

21 (b) REGULATORY AUTHORITY FOR ALLOCATION OF

22 CREDITS, INCOME, AND DEDUCTIONS.—Section 1358 of 

23 the Internal Revenue Code of 1986 (relating to allocation 

24 of credits, income, and deductions) is amended— 

25 (1) by striking ‘‘in accordance with this sub26 section’’ in subsection (c) and inserting ‘‘to the exVerDate Nov 24 2008 03:56 Jun 30, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3049.IH H3049

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1 tent provided in such regulations as may be pre2 scribed by the Secretary’’, and 

3 (2) by adding at the end the following new sub4 section: 

5 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

6 regulations consistent with the provisions of this sub7 chapter for the purpose of allocating gross income, deduc8 tions, and credits between or among qualifying shipping 

9 activities and other activities of a taxpayer.’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) Section 1355(a)(4) of the Internal Revenue 

12 Code of 1986 is amended by striking ‘‘exclusively’’. 

13 (2) Section 1355(b)(1)(B) of such Code is 

14 amended by striking ‘‘as a qualifying vessel’’ and in15 serting ‘‘in the transportation of goods or pas16 sengers’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

Æ 


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