Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''RAFT (Restore Access to Foreign
Trade) Act''.

SEC. 2. ELIMINATION OF FOREIGN BASE COMPANY SHIPPING INCOME AS FOREIGN
BASE COMPANY INCOME.

(a) Elimination of Foreign Base Company Shipping Income.--Section
954 of the Internal Revenue Code of 1986 (relating to foreign base
company income) is amended--
(1) by striking paragraph (4) of subsection (a) (relating
to foreign base company shipping income), and
(2) by striking subsection (f) (relating to foreign base
company shipping income).
(b) Conforming Amendments.--
(1) Subparagraph (D) of section 904(d)(2) of such Code
(relating to the definition of shipping income for purposes of
the foreign tax credit) is amended to read as follows:
''(D) Shipping income.--
''(i) In general.--The term 'shipping
income' means income derived from, or in
connection with, the use (or hiring or leasing
for use) of any aircraft or vessel in foreign
commerce, or from, or in connection with, the
performance of services directly related to the
use of any such aircraft, or vessel, or from
the sale, exchange, or other disposition of any
such aircraft or vessel.
''(ii) Special rules.--
''(I) Such term includes dividends
and interest received from a foreign
corporation in respect of which taxes
are deemed paid under section 902
(other than dividends from a
noncontrolled section 902 corporation
out of earnings and profits accumulated
in taxable years beginning before
January 1, 2003) and gain from the
sale, exchange, or other disposition of
stock or obligations of such a foreign
corporation to the extent that such
dividends, interest, and gains are
attributable to shipping income.
''(II) Such term includes that
portion of the distributive share of
the income of a partnership
attributable to shipping income.
''(III) Such term includes any
income derived from a space or ocean
activity (as defined in section
863(d)(2)).
''(IV) Such term does not include,
except as provided in subclause (I),
any dividend or interest income which
is foreign personal holding company
income as defined in section 954(c).
''(V) Such term does not include
financial services income.''.
(2) Section 952(c)(1)(B)(iii) of such Code is amended by
striking subclause (I) and redesignating subclauses (II)
through (VI) as subclauses (I) through (V), respectively.
(3) Section 953 of such Code is amended--
(A) by striking ''954(i)'' and inserting ''954(h)''
in subsections (b)(3) and (e) each place it appears,
and
(B) by striking ''954(h)(7)'' and inserting
''954(g)(7)'' in subsection (e)(7)(A).
(4) Section 954 of such Code is amended--
(A) in subsection (a) by inserting ''and'' at the
end of paragraph (3) and redesignating paragraph (5) as
paragraph (4),
(B) in subsection (b)--
(i) by striking ''the foreign base shipping
income,'' in paragraph (5),
(ii) by striking paragraphs (6) and (7),
and
(iii) by redesignating paragraph (8) as
paragraph (6), and
(C) by redesignating subsections (g), (h), and (i)
as subsections (f), (g), and (h), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2001, and to taxable years of United States shareholders (within
the meaning of section 951(b) of the Internal Revenue Code of 1986)
within which or with which such taxable years of such foreign
corporations end.
A:
RAFT (Restore Access to Foreign Trade) Act - Amends the Internal Revenue Code to eliminate foreign base company shipping income from inclusion as foreign base company income.Revises the definition of "shipping income" with respect to the application of the foreign tax credit.