(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 206 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
SEC. 245. GREAT LAKES DOMESTIC SHIPPING TO NOT DIS-
QUALIFY VESSEL FROM TONNAGE TAX. 
(a) IN GENERAL.—Section 1355 (relating to defini-
tions and special rules) is amended by redesignating sub-
section (g) as subsection (h) and by inserting after sub-
section (f) the following new subsection: 
‘‘(g) GREAT LAKES DOMESTIC SHIPPING TO NOT 
DISQUALIFY VESSEL.— 
‘‘(1) IN GENERAL.—If the electing corporation 
elects (at such time and in such manner as the Sec-
retary may require) to apply this subsection for any 
taxable year to any qualifying vessel which is used 
in qualified zone domestic trade during the taxable 
year— 
‘‘(A) solely for purposes of subsection 
(a)(4), such use shall be treated as use in 
United States foreign trade (and not as use in 
United States domestic trade), and 
‘‘(B) subsection (f) shall not apply with re-
spect to such vessel for such taxable year. 
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‘‘(2) EFFECT
OF
TEMPORARILY
OPERATING 
VESSEL IN UNITED STATES DOMESTIC TRADE.—In 
the case of a qualifying vessel to which this sub-
section applies— 
‘‘(A) IN GENERAL.—An electing corpora-
tion shall be treated as using such vessel in 
qualified zone domestic trade during any period 
of temporary use in the United States domestic 
trade (other than qualified zone domestic trade) 
if the electing corporation gives timely notice to 
the Secretary stating— 
‘‘(i) that it temporarily operates or 
has operated in the United States domestic 
trade (other than qualified zone domestic 
trade) a qualifying vessel which had been 
used in the United States foreign trade or 
qualified zone domestic trade, and 
‘‘(ii) its intention to resume operation 
of the vessel in the United States foreign 
trade or qualified zone domestic trade. 
‘‘(B) NOTICE.—Notice shall be deemed 
timely if given not later than the due date (in-
cluding extensions) for the corporation’s tax re-
turn for the taxable year in which the tem-
porary cessation begins. 
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‘‘(C) PERIOD
DISREGARD
IN
EFFECT.— 
The period of temporary use under subpara-
graph (A) continues until the earlier of the date 
of which— 
‘‘(i) the electing corporation abandons 
its intention to resume operations of the 
vessel in the United States foreign trade or 
qualified zone domestic trade, or 
‘‘(ii) the electing corporation resumes 
operation of the vessel in the United States 
foreign trade or qualified zone domestic 
trade. 
‘‘(D) NO DISREGARD IF DOMESTIC TRADE 
USE
EXCEEDS
DAYS.—Subparagraph (A) 
shall not apply to any qualifying vessel which is 
operated in the United States domestic trade 
(other than qualified zone domestic trade) for 
more than 30 days during the taxable year. 
‘‘(3) ALLOCATION
OF
INCOME
AND
DEDUC-
TIONS
TO
QUALIFYING
SHIPPING
ACTIVITIES.—In 
the case of a qualifying vessel to which this sub-
section applies, the Secretary shall prescribe rules 
for the proper allocation of income, expenses, losses, 
and deductions between the qualified shipping activi-
ties and the other activities of such vessel. 
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