Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1356&num=0&edition=prelim
Timestamp: 2020-08-15 00:02:55
Document Index: 84159162

Matched Legal Cases: ['§ 1356', '§1356', '§248', '§403', '§403', '§403']

[USC02] 26 USC 1356: Qualifying shipping activities
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26 USC 1356: Qualifying shipping activities Text contains those laws in effect on August 13, 2020
§1356. 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.
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
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.
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.
(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.
(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 .)
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) In general.-Such term shall not include any core qualifying activities.
"(B) Nonelecting corporations.-In the case of a corporation (other than an electing corporation) which is a member of an electing group, any core qualifying activities of the corporation shall be treated as qualifying secondary activities (and not as core qualifying activities)."