S.Amdt. 654

1. Adds TITLE _--MODIFICATION OF TONNAGE TAX at the end of the bill

   Adds a title

   In H.R. 2832 · Placed on Calendar Senate

   Passed the House of Representatives September 7, 2011.

   Inserted: TITLE _--MODIFICATION OF TONNAGE TAX

   Inserted: SEC. __. MODIFICATION OF THE APPLICATION OF THE TONNAGE TAX ON VESSELS OPERATING IN THE DUAL UNITED STATES DOMESTIC AND FOREIGN TRADES.

   Inserted: (a) In General.--Subsection (f) of section 1355 of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended to read as follows:

   Inserted: "(f) Effect of Operating a Qualifying Vessel in the Dual United States Domestic and Foreign Trades.--For purposes of this subchapter--

   Inserted: "(1) an electing corporation shall be treated as continuing to use a qualifying vessel in the United States foreign trade during any period of use in the United States domestic trade, and

   Inserted: "(2) gross income from such United States domestic trade shall not be excluded under section 1357(a), but shall not be taken into account for purposes of section 1353(b)(1)(B) or for purposes of section 1356 in connection with the application of section 1357 or 1358.".

   Inserted: (b) Regulatory Authority for Allocation of Credits, Income, and Deductions.--Section 1358 of the Internal Revenue Code of 1986 (relating to allocation of credits, income, and deductions) is amended--

   Inserted: (1) by striking "in accordance with this subsection" in subsection (c) and inserting "to the extent provided in such regulations as may be prescribed by the Secretary", and

   Inserted: (2) by adding at the end the following new subsection:

   Inserted: "(d) Regulations.--The Secretary shall prescribe regulations consistent with the provisions of this subchapter for the purpose of allocating gross income, deductions, and credits between or among qualifying shipping activities and other activities of a taxpayer.".

   Inserted: (c) Conforming Amendments.--

   Inserted: (1) Section 1355(a)(4) of the Internal Revenue Code of 1986 is amended by striking "exclusively".

   Show 5 more inserted paragraphsShow less

   Inserted: (2) Section 1355(b)(1)(B) of such Code is amended by striking "as a qualifying vessel" and inserting "in the transportation of goods or passengers".

   Inserted: (3) Section 1355 of such Code is amended--

   Inserted: (A) by striking subsection (g), and

   Inserted: (B) by redesignating subsection (h) as subsection (g).

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Original wording

   At the end, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed