Page:United States Statutes at Large Volume 118.djvu/1484

 118 STAT. 1454 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(A) the electing corporation abandons its intention to resume operation of the qualifying vessel, or ‘‘(B) the electing corporation resumes operation of the qualifying vessel. ‘‘(f) EFFECT OF TEMPORARILY OPERATING A QUALIFYING VESSEL IN THE UNITED STATES DOMESTIC TRADE.— ‘‘(1) IN GENERAL.—For purposes of this subchapter, an electing corporation shall be treated as continuing to use a qualifying vessel in the United States foreign trade during any period of temporary use in the United States domestic trade if the electing corporation gives timely notice to the Secretary stating— ‘‘(A) that it temporarily operates or has operated in the United States domestic trade a qualifying vessel which had been used in the United States foreign trade, and ‘‘(B) its intention to resume operation of the vessel in the United States foreign trade. ‘‘(2) NOTICE.—Notice shall be deemed timely if given not later than the due date (including extensions) for the corpora tion’s tax return for the taxable year in which the temporary cessation begins. ‘‘(3) PERIOD DISREGARD IN EFFECT.—The period of tem porary use under paragraph (1) continues until the earlier of the date of which— ‘‘(A) the electing corporation abandons its intention to resume operations of the vessel in the United States foreign trade, or ‘‘(B) the electing corporation resumes operation of the vessel in the United States foreign trade. ‘‘(4) NO DISREGARD IF DOMESTIC TRADE USE EXCEEDS 30 DAYS.—Paragraph (1) shall not apply to any qualifying vessel which is operated in the United States domestic trade for more than 30 days during the taxable year. ‘‘(g) REGULATIONS.—The Secretary shall prescribe such regula tions as may be necessary or appropriate to carry out the purposes of this section. ‘‘SEC. 1356. QUALIFYING SHIPPING ACTIVITIES. ‘‘(a) 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. ‘‘(b) CORE QUALIFYING ACTIVITIES.—For purposes of this sub chapter, the term ‘core qualifying activities’ means activities in operating qualifying vessels in United States foreign trade. ‘‘(c) QUALIFYING SECONDARY ACTIVITIES.—For purposes of this section— ‘‘(1) IN GENERAL.—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. ‘‘(2) SECONDARY ACTIVITIES.—The term ‘secondary activities’ means—

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