In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Marine Renewable Energy Promotion 
Act of 2009''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Fund.--The term ``Fund'' means the Adaptive Management 
        and Environmental Fund established by section 3(c).
            (2) Marine renewable energy.--The term ``marine renewable 
        energy'' means energy from--
                    (A) waves, tides, and currents in oceans, 
                estuaries, and tidal areas;
                    (B) free flowing water in rivers, lakes, man made 
                channels, and streams; and
                    (C) differentials in ocean temperature or ocean 
                thermal energy conversion.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. MARINE RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.

    (a) Research and Development Program.--
            (1) In general.--The Secretary shall establish a marine 
        renewable energy research and development program that is 
        focused on--
                    (A) developing new marine renewable energy 
                technologies;
                    (B) reducing the manufacturing and operation costs 
                of marine renewable energy technologies;
                    (C) increasing the reliability and survivability of 
                marine renewable energy facilities;
                    (D) integrating marine renewable energy into the 
                national electric grid;
                    (E) identifying opportunities for cross-pollination 
                and development of economies of scale between offshore 
                wind and marine renewable energy sources;
                    (F) identifying the environmental impacts of marine 
                renewable energy and ways to address any negative 
                impacts; and
                    (G)(i) applying advanced systems engineering and 
                system integration methods to identify critical 
                interfaces and develop open standards for marine 
                renewable energy;
                    (ii) transferring the resulting intellectual 
                property to industry stakeholders as public information 
                through published interface definitions, standards, and 
                demonstration projects; and
                    (iii) developing incentives for industry to comply 
                with the standards.
            (2) Administration.--The program established under 
        paragraph (1) shall be separate from any wind and hydropower 
        program carried out by the Secretary.
    (b) Marine-Based Energy Device Verification Program.--
            (1) Establishment.--The Secretary shall establish a marine-
        based energy device verification program to provide a bridge 
        from the wave, tidal, current, or thermal energy capture device 
        design and development efforts underway across the industry to 
        commercial deployment of marine renewable energy devices.
            (2) Purposes.--The purposes of the program are to fund, 
        facilitate the development and installation of, and evaluate 
        marine renewable energy projects, in partnership with the 
        Electric Power Research Institute, the National Renewable 
        Energy Laboratory, the Pacific Northwest National Laboratory 
        Marine Sciences Laboratory, and the Sandia National 
        Laboratories, and in conjunction with universities and other 
        institutions of higher education, private business entities, 
        and other appropriate organizations, in order--
                    (A) to increase marine renewable energy experience; 
                and
                    (B) to build and operate enough candidate devices 
                to obtain statistically significant operating and 
                maintenance data.
            (3) Objectives.--The objectives of the program include--
                    (A) verifying the performance, reliability, 
                maintainability, and cost of new marine renewable 
                energy device designs and system components in an 
                operating environment;
                    (B) providing States, regulators, utilities, and 
                other stakeholders with a valid opportunity to test and 
                evaluate marine renewable energy technology in new 
                areas;
                    (C) documenting and communicating the experience 
                from those projects for the benefit of utilities, 
                independent power producers, other nonutility 
                generators, device suppliers, and others in the marine 
                renewable energy development community; and
                    (D) resolving environmental issues through robust 
                characterization, reliable impact prediction, effective 
                monitoring, development and use of adaptive management, 
                and informing engineering design to improve 
                environmental performance.
    (c) Adaptive Management and Environmental Fund.--
            (1) Findings.--Congress finds that--
                    (A) the use of marine renewable energy technologies 
                can reduce contributions to global warming;
                    (B) marine renewable energy technologies can be 
                produced domestically;
                    (C) marine renewable energy is a nascent industry; 
                and
                    (D) the United States must work to promote new 
                renewable energy technologies that reduce contributions 
                to global warming gases and improve domestic energy 
                production.
            (2) Fund.--
                    (A) Establishment.--There is established in the 
                Treasury of the United States a revolving fund, to be 
                known as the ``Adaptive Management and Environmental 
                Fund'', consisting of such amounts as are appropriated 
                to the Fund under subsection (d).
                    (B) Expenditures from fund.--
                            (i) In general.--Subject to clause (ii), on 
                        request by the Secretary, the Secretary of the 
                        Treasury shall transfer from the Fund to the 
                        Secretary such amounts as the Secretary 
                        determines are necessary to provide grants to 
                        eligible entities to assist the entities in 
                        complying with Federal, State, or local 
                        regulatory permit requirements through 
                        assessment and demonstration of the 
                        environmental effects of marine renewable 
                        energy projects (including environmental 
                        studies, design, fabrication, deployment, 
                        operating, monitoring, environmental 
                        mitigation, and decommissioning costs).
                            (ii) Administrative expenses.--An amount 
                        not exceeding 10 percent of the amounts in the 
                        Fund shall be available for each fiscal year to 
                        pay the administrative expenses necessary to 
                        carry out this subsection.
                    (C) Transfers of amounts.--
                            (i) In general.--The amounts required to be 
                        transferred to the Fund under this paragraph 
                        shall be transferred at least monthly from the 
                        general fund of the Treasury to the Fund on the 
                        basis of estimates made by the Secretary of the 
                        Treasury.
                            (ii) Adjustments.--Proper adjustment shall 
                        be made in amounts subsequently transferred to 
                        the extent prior estimates were in excess of or 
                        less than the amounts required to be 
                        transferred.
            (3) Eligibility.--
                    (A) In general.--To be eligible for a grant under 
                this subsection, an entity shall provide to the 
                Secretary a regulatory permit that includes conditions 
                for the removal of the marine renewable energy project 
                supported by the grant if the permitting authority 
                finds that the marine renewable energy project has an 
                unacceptable adverse impact on the environment.
                    (B) Administration.--A marine renewable energy 
                project shall not be required to be removed in the 
                absence of a finding by the permitting authority that 
                the project has an unacceptable adverse impact.
            (4) Public availability.--The results of any assessment or 
        demonstration conducted under this subsection shall be made 
        available to the public, except to the extent that the 
        assessment or demonstration contains information that is 
        protected from disclosure under section 552(b) of title 5, 
        United States Code.
            (5) Audit requirements.--
                    (A) In general.--Any entity that receives a grant 
                under this subsection shall--
                            (i) track the use of grant funds from the 
                        Fund; and
                            (ii) certify annually to the Secretary that 
                        the grant funds were used only for purposes 
                        authorized under this subsection.
                    (B) Procedures.--The Secretary shall establish 
                procedures to ensure that the Secretary is able to 
                oversee and audit the use of funds by eligible 
                entities.
                    (C) Annual audits.--The Secretary shall conduct an 
                audit, at least annually, of the use of grant funds 
                received under this subsection by each eligible entity.
                    (D) Ineligibility.--The Secretary may declare an 
                entity ineligible for a grant under this subsection on 
                a finding of inappropriate use of funding.
            (6) Sunset provision.--
                    (A) Report.--The Secretary shall submit a report to 
                the appropriate committees of Congress if the Secretary 
                determines that the technologies and activities 
                supported under this subsection have achieved a level 
                of maturity that is sufficient to enable the program 
                authorized under this subsection to cease.
                    (B) Termination.--The program authorized under this 
                subsection and the Fund shall cease to exist effective 
                on the date of submission of a report described in 
                subparagraph (A).
            (7) Administration.--The Secretary may use amounts in the 
        Fund to provide assistance to State resource agencies that are 
        processing applications for permits required for marine 
        renewables projects that have received assistance from the Fund 
        to assist staff with understanding and evaluating applications 
        and participating in the applicable Federal Energy Regulatory 
        Commission or Minerals Management Service regulatory process.
            (8) Environmental requirement.--Nothing in this section 
        eliminates or otherwise affects any requirement imposed under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000 for each of fiscal 
years 2010 through 2021.

Output: Marine Renewable Energy Promotion Act of 2009 - Requires the Department of Energy (DOE) to establish a marine renewable energy research and development program, separate from any DOE wind and hydropower program, focused on: (1) developing new marine renewable energy technologies; (2) reducing the manufacturing and operation costs of such technologies; (3) increasing the reliability and survivability of marine renewable energy facilities; (4) integrating marine renewable energy into the national electric grid; (5) identifying opportunities for cross pollination and development of economies of scale between offshore wind and marine renewable energy sources; (6) identifying the environmental impacts of marine renewable energy and ways to address negative impacts; (7) applying advanced systems engineering and system integration methods to identify critical interfaces and develop open standards for marine renewable energy; (8) transferring the resulting intellectual property to industry stakeholders as public information through published interface definitions, standards, and demonstration projects; and (9) developing incentives for industry to comply with such standards.

Requires DOE to establish a marine-based energy device verification program to provide a bridge from the wave, tidal, current, or thermal energy capture device design and development efforts underway across the industry to commercial deployment of marine renewable energy devices. Sets forth as purpose of the Program to fund, facilitate the development and installation of, and evaluate marine renewable energy projects, in partnership with the Electric Power Research Institute, the National Renewable Energy Laboratory, the Pacific Northwest National Laboratory Marine Sciences Laboratory, and the Sandia National Laboratories in order to: (1) increase marine renewable energy experience; and (2) build and operate enough candidate devices to obtain statistically significant operating and maintenance data.

Establishes an Adaptive Management and Environmental Fund to provide grants for complying with requirements through assessment and demonstration of the environmental effects of marine renewable energy projects.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Activities Inventory Reform 
Act of 1998''.
SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY 
GOVERNMENTAL IN NATURE.
    (a) Lists Required.--Not later than the end of the third quarter of 
each fiscal year, the head of each executive agency shall submit to the 
Director of the Office of Management and Budget a list of activities 
performed by Federal Government sources for the executive agency that, 
in the judgment of the head of the executive agency, are not inherently 
governmental functions. The entry for an activity on the list shall 
include the following:
        (1) The fiscal year for which the activity first appeared on a 
    list prepared under this section.
        (2) The number of full-time employees (or its equivalent) that 
    are necessary for the performance of the activity by a Federal 
    Government source.
        (3) The name of a Federal Government employee responsible for 
    the activity from whom additional information about the activity 
    may be obtained.
    (b) OMB Review and Consultation.--The Director of the Office of 
Management and Budget shall review the executive agency's list for a 
fiscal year and consult with the head of the executive agency regarding 
the content of the final list for that fiscal year.
    (c) Public Availability of Lists.--
        (1) Publication.--Upon the completion of the review and 
    consultation regarding a list of an executive agency--
            (A) the head of the executive agency shall promptly 
        transmit a copy of the list to Congress and make the list 
        available to the public; and
            (B) the Director of the Office of Management and Budget 
        shall promptly publish in the Federal Register a notice that 
        the list is available to the public.
        (2) Changes.--If the list changes after the publication of the 
    notice as a result of the resolution of a challenge under section 
    3, the head of the executive agency shall promptly--
            (A) make each such change available to the public and 
        transmit a copy of the change to Congress; and
            (B) publish in the Federal Register a notice that the 
        change is available to the public.
    (d) Competition Required.--Within a reasonable time after the date 
on which a notice of the public availability of a list is published 
under subsection (c), the head of the executive agency concerned shall 
review the activities on the list. Each time that the head of the 
executive agency considers contracting with a private sector source for 
the performance of such an activity, the head of the executive agency 
shall use a competitive process to select the source (except as may 
otherwise be provided in a law other than this Act, an Executive order, 
regulations, or any executive branch circular setting forth 
requirements or guidance that is issued by competent executive 
authority). The Director of the Office of Management and Budget shall 
issue guidance for the administration of this subsection.
    (e) Realistic and Fair Cost Comparisons.--For the purpose of 
determining whether to contract with a source in the private sector for 
the performance of an executive agency activity on the list on the 
basis of a comparison of the costs of procuring services from such a 
source with the costs of performing that activity by the executive 
agency, the head of the executive agency shall ensure that all costs 
(including the costs of quality assurance, technical monitoring of the 
performance of such function, liability insurance, employee retirement 
and disability benefits, and all other overhead costs) are considered 
and that the costs considered are realistic and fair.

SEC. 3. CHALLENGES TO THE LIST.

    (a) Challenge Authorized.--An interested party may submit to an 
executive agency a challenge of an omission of a particular activity 
from, or an inclusion of a particular activity on, a list for which a 
notice of public availability has been published under section 2.
    (b) Interested Party Defined.--For the purposes of this section, 
the term ``interested party'', with respect to an activity referred to 
in subsection (a), means the following:
        (1) A private sector source that--
            (A) is an actual or prospective offeror for any contract, 
        or other form of agreement, to perform the activity; and
            (B) has a direct economic interest in performing the 
        activity that would be adversely affected by a determination 
        not to procure the performance of the activity from a private 
        sector source.
        (2) A representative of any business or professional 
    association that includes within its membership private sector 
    sources referred to in paragraph (1).
        (3) An officer or employee of an organization within an 
    executive agency that is an actual or prospective offeror to 
    perform the activity.
        (4) The head of any labor organization referred to in section 
    7103(a)(4) of title 5, United States Code, that includes within its 
    membership officers or employees of an organization referred to in 
    paragraph (3).
    (c) Time for Submission.--A challenge to a list shall be submitted 
to the executive agency concerned within 30 days after the publication 
of the notice of the public availability of the list under section 2.
    (d) Initial Decision.--Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall--
        (1) decide the challenge; and
        (2) transmit to the party submitting the challenge a written 
    notification of the decision together with a discussion of the 
    rationale for the decision and an explanation of the party's right 
    to appeal under subsection (e).
    (e) Appeal.--
        (1) Authorization of appeal.--An interested party may appeal an 
    adverse decision of the official to the head of the executive 
    agency within 10 days after receiving a notification of the 
    decision under subsection (d).
        (2) Decision on appeal.--Within 10 days after the head of an 
    executive agency receives an appeal of a decision under paragraph 
    (1), the head of the executive agency shall decide the appeal and 
    transmit to the party submitting the appeal a written notification 
    of the decision together with a discussion of the rationale for the 
    decision.

SEC. 4. APPLICABILITY.

    (a) Executive Agencies Covered.--Except as provided in subsection 
(b), this Act applies to the following executive agencies:
        (1) Executive department.--An executive department named in 
    section 101 of title 5, United States Code.
        (2) Military department.--A military department named in 
    section 102 of title 5, United States Code.
        (3) Independent establishment.--An independent establishment, 
    as defined in section 104 of title 5, United States Code.
    (b) Exceptions.--This Act does not apply to or with respect to the 
following:
        (1) General accounting office.--The General Accounting Office.
        (2) Government corporation.--A Government corporation or a 
    Government controlled corporation, as those terms are defined in 
    section 103 of title 5, United States Code.
        (3) Nonappropriated funds instrumentality.--A part of a 
    department or agency if all of the employees of that part of the 
    department or agency are employees referred to in section 2105(c) 
    of title 5, United States Code.
        (4) Certain depot-level maintenance and repair.--Depot-level 
    maintenance and repair of the Department of Defense (as defined in 
    section 2460 of title 10, United States Code).

SEC. 5. DEFINITIONS.

    In this Act:
        (1) Federal government source.--The term ``Federal Government 
    source'', with respect to performance of an activity, means any 
    organization within an executive agency that uses Federal 
    Government employees to perform the activity.
        (2) Inherently governmental function.--
            (A) Definition.--The term ``inherently governmental 
        function'' means a function that is so intimately related to 
        the public interest as to require performance by Federal 
        Government employees.
            (B) Functions included.--The term includes activities that 
        require either the exercise of discretion in applying Federal 
        Government authority or the making of value judgments in making 
        decisions for the Federal Government, including judgments 
        relating to monetary transactions and entitlements. An 
        inherently governmental function involves, among other things, 
        the interpretation and execution of the laws of the United 
        States so as--
                (i) to bind the United States to take or not to take 
            some action by contract, policy, regulation, authorization, 
            order, or otherwise;
                (ii) to determine, protect, and advance United States 
            economic, political, territorial, property, or other 
            interests by military or diplomatic action, civil or 
            criminal judicial proceedings, contract management, or 
            otherwise;
                (iii) to significantly affect the life, liberty, or 
            property of private persons;
                (iv) to commission, appoint, direct, or control 
            officers or employees of the United States; or
                (v) to exert ultimate control over the acquisition, 
            use, or disposition of the property, real or personal, 
            tangible or intangible, of the United States, including the 
            collection, control, or disbursement of appropriated and 
            other Federal funds.
            (C) Functions excluded.--The term does not normally 
        include--
                (i) gathering information for or providing advice, 
            opinions, recommendations, or ideas to Federal Government 
            officials; or
                (ii) any function that is primarily ministerial and 
            internal in nature (such as building security, mail 
            operations, operation of cafeterias, housekeeping, 
            facilities operations and maintenance, warehouse 
            operations, motor vehicle fleet management operations, or 
            other routine electrical or mechanical services).

SEC. 6. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1998.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Output: Federal Activities Inventory Reform Act of 1998 - Directs the head of each executive agency to submit to the Director of the Office of Management and Budget, not later than the end of the third quarter of each fiscal year, a list of activities performed by Federal Government sources for the agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. 
Requires:  (1) the Director to review the agency's list and consult with the agency head regarding the contents of the final list for the fiscal year; (2) the agency head to transmit a copy of the list to the Congress and make the list publicly available; (3) the Director to publish in the Federal Register a notice that the list is publicly available; and (4) the agency head to publish a notice regarding, make available to the public, and transmit to the Congress, any subsequent change to the list. 
Requires the agency head to:  (1) review the activities on the list within a reasonable time after such a notice of its availability is published; and (2) use a competitive process (with specified exceptions) and ensure that all costs are considered each time that he or she considers contracting with a private sector source for the performance of an activity on the list. 
(Sec. 3) Permits an interested party to submit to an agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice has been published.  Sets forth procedures governing filing challenges, agency decisions on challenges, appealing such decisions, and agency decisions on such appeals. 
(Sec. 4) Provides that this Act shall not apply to or with respect to:  (1) the General Accounting Office; (2) Government corporations and Government controlled corporations; (3) a part of a department or agency if all of the employees of that part are employees paid from nonappropriated funds of certain instrumentalities of the United States under the jurisdiction of the armed forces; and (4) depot-level maintenance and repair of the Department of Defense.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Security Sealift 
Enhancement Act of 1999''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                   TITLE I--CAPITAL CONSTRUCTION FUND

Sec. 101. Amendments of Internal Revenue Code of 1986.
Sec. 102. Amendment to the Tariff Act of 1930.
Sec. 103. Effective date.
        TITLE II--ELECTION TO EXPENSE UNITED STATES FLAG VESSELS

Sec. 201. Election to expense certain United States flag vessels.
            TITLE III--INCOME EXCLUSION FOR MERCHANT SEAMEN

Sec. 301. Income of merchant seaman excludable from gross income as 
                            foreign earned income.
            TITLE IV--EXEMPTION FROM ALTERNATIVE MINIMUM TAX

Sec. 401. Exemption from alternative minimum tax for corporations that 
                            operate United States flag vessels.
        TITLE V--CONVENTIONS ON UNITED STATES-FLAG CRUISE SHIPS

Sec. 501. Conventions on United States-flag cruise ships.

                   TITLE I--CAPITAL CONSTRUCTION FUND

SEC. 101. AMENDMENTS OF INTERNAL REVENUE CODE OF 1986.

    (a) Treatment of Certain Lease Payments.--
            (1) Paragraph (1) of section 7518(e) of the Internal 
        Revenue Code of 1986 is amended by striking ``or'' at the end 
        of subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, or'', and by inserting after 
        subparagraph (C) the following new subparagraph:
                    ``(D) the payments of amounts which reduce the 
                principal amount (as determined under regulations) of a 
                qualified lease of a qualified vessel or container 
                which is part of the complement of an eligible 
                vessel.''.
            (2) Paragraph (4) of section 7518(f) of such Code is 
        amended by inserting ``or to reduce the principal amount of any 
        qualified lease'' after ``indebtedness''.
    (b) Authority To Make Deposits Under The Tariff Act of 1930.--
            (1) Paragraph (1) of section 7518(a) of such Code is 
        amended by striking ``and'' at the end of subparagraph (C), by 
        striking the period at the end of subparagraph (D) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(E) the amount elected for deposit under 
                subsection (i) of section 466 of the Tariff Act of 1930 
                (19 U.S.C. 1466).''.
            (2) Subparagraph (A) of section 7518(d)(2) of such Code is 
        amended to read as follows:
                    ``(A) amounts referred to in subsections (a)(1)(B) 
                and (E).''.
    (c) Authority To Make Deposits for Prior Years Based on Audit 
Adjustments.--Subsection (a) of section 7518 of such Code is amended by 
adding at the end thereof the following new paragraph:
            ``(4) Deposits for prior years.--To the extent permitted by 
        joint regulations, deposits may be made in excess of the 
        limitation described in paragraph (1) (and any limitation 
        specified in the agreement) for the taxable year if, by reason 
        of a change in taxable income for a prior taxable year that has 
        become final pursuant to a closing agreement or other similar 
        agreement entered into during the taxable year, the amount of 
        the deposit could have been made for such prior taxable 
        year.''.
    (d) Treatment of Capital Gains and Losses.--
            (1) Paragraph (3) of section 7518(d) of such Code is 
        amended to read as follows:
            ``(3) Capital gain account.--The capital gain account shall 
        consist of--
                    ``(A) amounts representing long-term capital gains 
                (as defined in section 1222) on assets held in the 
                fund, reduced by
                    ``(B) amounts representing long-term capital losses 
                (as defined in such section) on assets held in the 
                fund.''.
            (2) Subparagraph (B) of section 7518(d)(4) of such Code is 
        amended to read as follows:
                    ``(B)(i) amounts representing short-term capital 
                gains (as defined in section 1222) on assets held in 
                the fund, reduced by
                    ``(ii) amounts representing short-term capital 
                losses (as defined in such section) on assets held in 
                the fund,''.
            (3) Subparagraph (B) of section 7518(g)(3) of such Code is 
        amended by striking ``gain'' and all that follows and inserting 
        ``long-term capital gain (as defined in section 1222), and''.
            (4) The last sentence of subparagraph (A) of section 
        7518(g)(6) of such Code is amended by striking ``20 percent (34 
        percent in the case of a corporation)'' and inserting ``the 
        rate applicable to net capital gain under such section 
        1(h)(1)(C) or 1201(a), as the case may be''.
    (e) Computation of Interest With Respect to Nonqualified 
Withdrawals.--
            (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 redesignating 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 securities approved by 
        the Secretary'' and inserting ``interest-bearing securities and 
        other income-producing assets (including accounts receivable) 
        approved by the Secretary''.
            (2) The last sentence of paragraph (1) of section 7518(e) 
        of such Code is amended by striking ``and containers'' each 
        place it appears.
            (3) 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),''.
            (4) Subsection (c) of section 56 of such Code is amended by 
        striking paragraph (2) and by redesignating paragraph (3) as 
        paragraph (2).
            (5) Section 7518(e) is amended by adding at the end the 
        following new paragraph:
            ``(3) Qualified withdrawal.--In the case of amounts in any 
        fund as of the date of the enactment of this paragraph, and any 
        earnings thereon, for purposes of this subsection, the term 
        `qualified withdrawal' has the meaning given such term by 
        applying subsection (i)(2) as of such date.''
    (g) Definitions.--Subsection (i) of section 7518 of such Code is 
amended to read as follows:
    ``(i) Definitions.--
            ``(1) In general.--Except as provided in paragraph (2), 
        terms used in this section shall have the same meaning as in 
        section 607(k) of the Merchant Marine Act, 1936.
            ``(2) Other definitions.--For the purposes of this 
        section--
                    ``(A) The term `eligible vessel' means any vessel--
                            ``(i) documented under the laws of the 
                        United States, and
                            ``(ii) operated in the foreign or domestic 
                        commerce of the United States or in the 
                        fisheries of the United States.
                    ``(B) Qualified vessel.--The term `qualified 
                vessel' means any vessel--
                            ``(i) constructed in the United States and, 
                        if reconstructed, reconstructed in the United 
                        States,
                            ``(ii) documented under the laws of the 
                        United States, and
                            ``(iii) which the person maintaining the 
                        fund agrees with the Secretary will be operated 
                        in the fisheries of the United States, or in 
                        the United States foreign, Great Lakes, 
                        noncontiguous domestic trade, or other 
                        oceangoing domestic trade between two coastal 
                        points in the United States or in support of 
                        operations conducted on the Outer Continental 
                        Shelf.
                    ``(C) Vessel.--The term `vessel' includes 
                containers or trailers intended for use as part of the 
                complement of one or more eligible vessels and cargo 
                handling equipment which the Secretary determines is 
                intended for use primarily on the vessel. The term 
                `vessel' also includes an ocean-going towing vessel or 
                an ocean-going barge or comparable towing vessel or 
                barge operated on the Great Lakes.
                    ``(D) Foreign commerce.--The terms `foreign 
                commerce' and `foreign trade' have the meanings given 
                such terms in section 905 of the Merchant Marine Act, 
                1936, except that these terms shall include commerce or 
                trade between foreign ports.
                    ``(E) Qualified lease.--The term `qualified lease' 
                means any lease with a term of at least 5 years.''

SEC. 102. AMENDMENT TO THE TARIFF ACT OF 1930.

    Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466) is amended 
by adding at the end the following new subsection:
    ``(i) Election To Deposit Duty Into a Capital Construction Fund In 
Lieu of Payment to the Secretary of the Treasury.--At the election of 
the owner or master of any vessel referred to in subsection (a) of this 
section which is an eligible vessel (as defined in section 7518(i)(2) 
of the Internal Revenue Code of 1986), the portion of any duty imposed 
by subsection (a) which is deposited in a fund established under 
section 607 of the Merchant Marine Act, 1936 shall be treated as paid 
to the Secretary of the Treasury in satisfaction of the liability for 
such duty.''

SEC. 103. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this section, the 
amendments made by this title shall apply to taxable years ending after 
the date of the enactment of this Act.
    (b) Changes in Computation of Interest.--The amendments made by 
section 101(e) shall apply to withdrawals made after December 31, 1998, 
including for purposes of computing interest on such a withdrawal for 
periods on or before such date.
    (c) Qualified Leases.--The amendments made by section 101(a) shall 
apply to leases in effect on, or entered into after, December 31, 1998.
    (d) Amendment to the Tariff Act of 1930.--The amendment made by 
section 102 shall apply with respect to entries not yet liquidated by 
December 31, 1998, and to entries made on or after such date.

        TITLE II--ELECTION TO EXPENSE UNITED STATES FLAG VESSELS

SEC. 201. ELECTION TO EXPENSE CERTAIN UNITED STATES FLAG VESSELS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179A the following new section:

``SEC. 179B. DEDUCTION FOR UNITED STATES FLAG VESSELS.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any vessel that is a qualified United States flag vessel as an 
expense which is not chargeable to its capital account.
    ``(b) Year in Which Deduction Allowed.--The deduction under 
subsection (a) shall be allowed for the taxable year in which the 
vessel first becomes a qualified United States flag vessel.
    ``(c) Definitions.--
            ``(1) Qualified united states flag vessel.--For purposes of 
        this section, the term `qualified United States flag vessel' 
        means a United States flag vessel that is operated exclusively 
        in the foreign trade of the United States.
            ``(2) Cost.--For purposes of this section, the term `cost' 
        means an amount equal to the lesser of--
                    ``(A) the purchase price of the vessel, or
                    ``(B) the adjusted basis of the vessel, determined 
                under section 1011, at the time that the vessel becomes 
                a qualified United States flag vessel.
    ``(d) Basis Reduction.--
            ``(1) In general.--For purposes of this title, the basis of 
        any property shall be reduced by the portion of the cost of 
        such property taken into account under subsection (a).
            ``(2) Ordinary income recapture.--For purposes of section 
        1245, the amount of the deduction allowable under subsection 
        (a) with respect to any property which is of a character 
        subject to the allowance for depreciation shall be treated as a 
        deduction allowed for depreciation under section 167.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 263(a) of such Code is amended 
        by striking ``or'' at the end of subparagraph (G), by striking 
        the period at the end of subparagraph (H) and inserting ``; 
        or'', and by adding at the end the following new subparagraph:
                    ``(I) expenditures for which a deduction is allowed 
                under section 179B.''.
            (2) Subparagraph (B) of section 312(k)(3) of such Code is 
        amended by striking ``or 179A'' each place it appears and 
        inserting ``, 179A, or 179B''.
            (3) Subparagraph (C) of section 1245(a)(2) of such Code is 
        amended by inserting ``179B,'' after ``179A,''.
            (4) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179A the following new item:

                              ``Sec. 179B. Deduction for United States 
                                        flag vessels.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

            TITLE III--INCOME EXCLUSION FOR MERCHANT SEAMEN

SEC. 301. INCOME OF MERCHANT SEAMAN EXCLUDABLE FROM GROSS INCOME AS 
              FOREIGN EARNED INCOME.

    (a) Section 911 Exclusion.--Section 911(d) of the Internal Revenue 
Code of 1986 (relating to citizens or residents of the United States 
living abroad) is amended by redesignating paragraph (9) as paragraph 
(10) and by inserting after paragraph (8) the following:
            ``(9) Application to certain merchant marine crews.--In 
        applying this section to an individual who is a citizen or 
        resident of the United States and who is employed for a minimum 
        of 90 days during a taxable year as a regular member of the 
        crew of a vessel or vessels owned, operated, or chartered by a 
        United States citizen--
                    ``(A) the individual shall be treated as a 
                qualified individual without regard to the requirements 
                of paragraph (1); and
                    ``(B) any earned income attributable to services 
                performed by that individual so employed on such a 
                vessel while it is engaged in transportation between 
                the United States and a foreign country or possession 
                of the United States shall be treated (except as 
                provided by subsection (b)(1)(B)) as foreign earned 
                income regardless of where payments of such income are 
                made.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

            TITLE IV--EXEMPTION FROM ALTERNATIVE MINIMUM TAX

SEC. 401. EXEMPTION FROM ALTERNATIVE MINIMUM TAX FOR CORPORATIONS THAT 
              OPERATE UNITED STATES FLAG VESSELS.

    (a) In General.--Section 55 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(f) Exemption for Corporations That Operate United States Flag 
Vessels.--
            ``(1) In General.--The tentative minimum tax of a 
        corporation shall be zero for any taxable year in which the 
        corporation is a qualified corporation.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Qualified corporation.--The term `qualified 
                corporation' means any domestic corporation if--
                            ``(i) substantially all of the assets of 
                        such corporation are related to the maritime 
                        transportation business, and
                            ``(ii) such corporation owns or demise 
                        charters a fleet of 4 or more qualified United 
                        States flag vessels.
                    ``(B) Qualified united states flag vessel.--The 
                term `qualified United States flag vessel' means a 
                United States flag vessel having a deadweight tonnage 
                of not less than 10,000 deadweight tons that is 
                operated exclusively in the foreign trade of the United 
                States during each of the 360 days immediately 
                preceding the last day of the taxable year. Days during 
                which the vessel is drydocked, surveyed, inspected, or 
                repaired shall be considered days of operation for 
                purposes of this subsection.
                    ``(C) Foreign trade.--The term `foreign trade' has 
                the meaning given to such term by section 7518(i)(2).''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

        TITLE V--CONVENTIONS ON UNITED STATES-FLAG CRUISE SHIPS

SEC. 501. CONVENTIONS ON UNITED STATES-FLAG CRUISE SHIPS.

    (a) In General.--Section 274(h)(2) of the Internal Revenue Code of 
1986 (relating to conventions on cruise ships) is amended by striking 
``that--'' and all that follows through ``possessions of the United 
States.'' and inserting ``that the cruise ship is a vessel registered 
in the United States.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years ending after the date of the enactment of this 
Act.


Output: Title II: Election to Expense United States Flag Vessels
 - Permits, under the IRC, a taxpayer to elect to treat the cost of any vessel that is a qualified U. S. flag vessel as an expense which is not chargeable to its capital account.
Title III: Income Exclusion for Merchant Seamen
 - Permits the income of certain merchant seaman to be excluded from gross income under IRC provisions permitting such exclusion for U.S. citizens or residents living abroad.
Title IV: Exemption from Alternative Minimum Tax
 - Provides that the tentative minimum tax shall be zero for certain corporations which derive substantially all of their assets from the operation of U.S. flag vessels.
Title V: Conventions on United States-Flag Cruise Ships
 - Eliminates the requirements that a cruise ship be U.S. registered and that all points of call be in the U.S. or its possessions in order to qualify for the deduction allowed for the attendance of a convention on a cruise ship.