120 STAT. 1662
PUBLIC LAW 109–304—OCT. 6, 2006
and liabilities governing merchant vessels, whether the United States Government has an interest in the vessel as an owner or holds a mortgage, lien, or other interest. ‘‘CHAPTER 573—VESSEL TRADE-IN PROGRAM ‘‘Sec. ‘‘57301. ‘‘57302. ‘‘57303. ‘‘57304. ‘‘57305. ‘‘57306. ‘‘57307. ‘‘57308.
Definitions. Authority to acquire vessels. Utility value and tonnage requirements. Eligible acquisition dates. Determination of trade-in allowance. Payment of trade-in allowance. Recognition of gain for tax purposes. Use of vessels at least 25 years old.
‘‘§ 57301. Definitions ‘‘In this chapter: ‘‘(1) NEW VESSEL.—The term ‘new vessel’ means a vessel— ‘‘(A) constructed under this subtitle and acquired within 2 years after the date of completion; or ‘‘(B) constructed in a domestic shipyard on private account and not under this subtitle, and documented under the laws of the United States. ‘‘(2) OBSOLETE VESSEL.—The term ‘obsolete vessel’ means a vessel that— ‘‘(A) is of at least 1,350 gross tons; ‘‘(B) the Secretary of Transportation believes should, because of its age, obsolescence, or other reasons, be replaced in the public interest; and ‘‘(C) has been owned by a citizen of the United States for at least 3 years immediately before its acquisition under this chapter. ‘‘§ 57302. Authority to acquire vessels ‘‘To promote the construction of new, safe, and efficient vessels to carry the domestic and foreign waterborne commerce of the United States, the Secretary of Transportation may acquire an obsolete vessel in exchange for an allowance of credit toward the cost of construction or purchase of a new vessel as provided in this chapter. ‘‘§ 57303. Utility value and tonnage requirements ‘‘(a) UTILITY VALUE.—The utility value of a new vessel to be acquired under this chapter for operation in the domestic or foreign commerce of the United States may not be substantially less than that of the obsolete vessel acquired in exchange under this chapter. ‘‘(b) TONNAGE.—If the Secretary of Transportation finds that the new vessel will have a utility value at least equal to that of the obsolete vessel, the new vessel may be of lesser gross tonnage than the obsolete vessel. However, the gross tonnage of the new vessel must be at least one-third the gross tonnage of the obsolete vessel. ‘‘§ 57304. Eligible acquisition dates ‘‘At the option of the owner, the acquisition of an obsolete vessel under this chapter shall occur— ‘‘(1) when the owner contracts for the construction or purchase of a new vessel; or
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