118 STAT. 1450 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘Subchapter R—Election To Determine Corporate Tax on Certain International Shipping Activities Using Per Ton Rate ‘‘Sec. 1352. Alternative tax on qualifying shipping activities. ‘‘Sec. 1353. Notional shipping income. ‘‘Sec. 1354. Alternative tax election; revocation; termination. ‘‘Sec. 1355. Definitions and special rules. ‘‘Sec. 1356. Qualifying shipping activities. ‘‘Sec. 1357. Items not subject to regular tax; depreciation; interest. ‘‘Sec. 1358. Allocation of credits, income, and deductions. ‘‘Sec. 1359. Disposition of qualifying vessels. ‘‘SEC. 1352. ALTERNATIVE TAX ON QUALIFYING SHIPPING ACTIVITIES. ‘‘In the case of an electing corporation, the tax imposed by section 11 shall be the amount equal to the sum of— ‘‘(1) the tax imposed by section 11 determined after the application of this subchapter, and ‘‘(2) a tax equal to— ‘‘(A) the highest rate of tax specified in section 11, multiplied by ‘‘(B) the notional shipping income for the taxable year. ‘‘SEC. 1353. NOTIONAL SHIPPING INCOME. ‘‘(a) IN GENERAL.—For purposes of this subchapter, the notional shipping income of an electing corporation shall be the sum of the amounts determined under subsection (b) for each qualifying vessel operated by such electing corporation. ‘‘(b) AMOUNTS.— ‘‘(1) IN GENERAL.—For purposes of subsection (a), the amount of notional shipping income of an electing corporation for each qualifying vessel for the taxable year shall equal the product of— ‘‘(A) the daily notional shipping income, and ‘‘(B) the number of days during the taxable year that the electing corporation operated such vessel as a qualifying vessel in United States foreign trade. ‘‘(2) TREATMENT OF VESSELS THE INCOME FROM WHICH IS NOT OTHERWISE SUBJECT TO TAX.—In the case of a qualifying vessel any of the income from which is not included in gross income by reason of section 883 or otherwise, the amount of notional shipping income from such vessel for the taxable year shall be the amount which bears the same ratio to such shipping income (determined without regard to this paragraph) as the gross income from the operation of such vessel in the United States foreign trade bears to the sum of such gross income and the income so excluded. ‘‘(c) DAILY NOTIONAL SHIPPING INCOME.—For purposes of sub section (b), the daily notional shipping income from the operation of a qualifying vessel is— ‘‘(1) 40 cents for each 100 tons of so much of the net tonnage of the vessel as does not exceed 25,000 net tons, and ‘‘(2) 20 cents for each 100 tons of so much of the net tonnage of the vessel as exceeds 25,000 net tons. ‘‘(d) MULTIPLE OPERATORS OF VESSEL.—If for any period 2 or more persons are operators of a qualifying vessel, the notional shipping income from the operation of such vessel for such period
�
