(1) Subparagraph (C) of section 7518(g)(3) of
such Code is amended—
(A) by striking clause (i) and inserting the
following new clause:
‘‘(i) no addition to the tax shall be
payable under section 6651, and’’, and
(B) by striking ‘‘paid at the applicable rate
(as defined in paragraph (4))’’ in clause (ii) and
inserting ‘‘paid in accordance with section
6601’’.
(2) Subsection (g) of section 7518 of such Code
is amended by striking paragraph (4) and by redes-
ignating paragraphs (5) and (6) as paragraphs (4)
and (5), respectively.
(3) Subparagraph (A) of section 7518(g)(5) of
such Code, as redesignated by paragraph (2), is
amended by striking ‘‘paragraph (5)’’ and inserting
‘‘paragraph (4)’’.
(f) OTHER CHANGES.—
(1) Paragraph (2) of section 7518(b) of such
Code is amended by striking ‘‘interest-bearing secu-
rities approved by the Secretary’’ and inserting ‘‘in-
terest-bearing securities and other income-producing
assets (including accounts receivable) approved by
the Secretary’’.
(2) Subsection (j) of section 7518 of such Code
is amended by striking ‘‘this section.’’ and inserting
‘‘the Omnibus Budget Reconciliation Act of 1993.’’
(3) Section 137 of such Code is amended by
striking paragraph (4) and by redesignating para-
graphs (5) and (6) as paragraphs (4) and (5), re-
spectively.
(4) Subparagraph (B) of section 543(a)(1) of
such Code is amended to read as follows:
‘‘(B) interest on amounts set aside in a capital
construction fund under section 607 of the Merchant
Marine Act, 1936 (46 App. U.S.C. 1177), or in a
construction reserve fund under section 511 of such
Act (46 App. U.S.C. 1161),’’.
(5) Subsection (c) of section 56 is amended by
striking paragraph (2) and by redesignating para-
graph (3) as paragraph (2).
SEC. 4. 3-YEAR RECOVERY PERIOD FOR UNITED STATES
FLAG VESSELS.
(a) IN GENERAL.—Subparagraph (A) of section
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (i), by striking
the period at the end of clause (ii) and inserting ‘‘, and’’,
and by adding at the end thereof the following:
‘‘(iii) any eligible vessel (as defined in
section 607(k)(1) of the Merchant Marine
Act, 1936, and its complement of contain-
ers, but only if the original use of such
vessel and containers commences with the
taxpayer.
Clause (iii) shall not apply to any vessel docu-
mented under the laws of the United States for
operation in the fisheries of the United States.’’
(b) MINIMUM TAX TREATMENT.—
(1) Subparagraph (B) of section 56(a)(1) of
such Code is amended by inserting before the period
‘‘or in paragraph (3)(A)(iii) of section 168(e)’’.
(2) Clause (v) of section 56(g)(4)(A) of such
Code is amended by inserting ‘‘or in paragraph
(3)(A)(iii) of section 168(e)’’ after ‘‘section 168(f)’’.
SEC. 5. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in
this section, the amendments made by this Act shall apply
to taxable years beginning after the date of the enactment
of this Act.
(b) DEFINITION
OF
QUALIFIED
VESSEL.—The
amendments made by paragraphs (2) and (3) of section
2(a) shall apply for purposes of determining whether any
withdrawal made after December 31, 1992, is a qualified
withdrawal (within the meaning of section 607(f) of the
Merchant Marine Act, 1936, as in effect after such
amendments).
(c) TAXATION
OF EARNINGS.—The amendments
made by sections 2(b) and 3(a) shall apply to earnings
after December 31, 1992, in taxable years ending after
such date.
(d) CHANGES IN COMPUTATION OF INTEREST.—The
amendments made by sections 2(f) and 3(e) shall apply
to withdrawals made after December 31, 1992, including
for purposes of computing interest on such a withdrawal
for periods on or before such date.
(e) QUALIFIED LEASES.—The amendments made by
sections 2(c) and 3(b) shall apply to leases in effect on,
or entered into after, December 31, 1992.
(f) DEPRECIATION.—The amendments made by sec-
tion 4 shall apply to property placed in service after De-
cember 31, 1992, in taxable years ending after such date.
Æ
HR 2152 IH——2