Page:United States Statutes at Large Volume 118.djvu/1485

 118 STAT. 1455 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(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 for eign 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 oper ating qualifying vessels in United States foreign trade, and ‘‘(D) such other activities as may be prescribed by the Secretary pursuant to regulations. ‘‘(3) COORDINATION WITH CORE ACTIVITIES.— ‘‘(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 activi ties of the corporation shall be treated as qualifying sec ondary activities (and not as core qualifying activities). ‘‘(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. ‘‘(e) APPLICATION OF GROSS INCOME TESTS IN CASE OF ELECTING GROUP.—In the case of an electing group, subsections (c)(1) and (d)(3) shall be applied as if such group were 1 entity, and the limitations under such subsections shall be allocated among the corporations in such group. ‘‘SEC. 1357. ITEMS NOT SUBJECT TO REGULAR TAX; DEPRECIATION; INTEREST. ‘‘(a) EXCLUSION FROM GROSS INCOME.—Gross income of an electing corporation shall not include its income from qualifying shipping activities. ‘‘(b) ELECTING GROUP MEMBER.—Gross income of a corporation (other than an electing corporation) which is a member of an electing group shall not include its income from qualifying shipping activities conducted by such member. ‘‘(c) DENIAL OF LOSSES, DEDUCTIONS, AND CREDITS.—

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