PUBLIC LAWS-CH. 82-MAR . 8 , 1946 vessel (exclusive of service, if any, required under the terms of the charter) under any charter party made prior to the date of the enactment of this Act, and any charter hire for such use accrued up to such date of enactment and unpaid shall be canceled; and the Commission shall credit the applicant with the amount that would have been paid by the United States to the applicant as charter hire for bare-boat use of vessels exchanged by the applicant on the original purchase (for the period beginning with date on which the vessels so exchanged were delivered to the Commission and ending with the date of the enactment of this Act). Exchange allow- (7) The allowance made to the applicant on any vessel ane exchanged by him on the original purchase shall be readjusted so as Ante, p. 45 . to limit such allowance to the amount provided for under section 8. deficrpents in d (8) There shall be subtracted from the sum of the credits in eral taxes. favor of the Commission under the foregoing provisions of this subsection the amount of any overpayments of Federal taxes by the applicant resulting from the application of subsection (c) (1), and there shall be subtracted from the sum of the credits in favor of the applicant under the foregoing provisions of this subsection the amount of any deficiencies in Federal taxes of the applicant resulting from the application of subsection (c) (1). If, after making such subtractions, the sum of the credits in favor of the applicant exceeds the sum of the credits in favor of the Commis- sion, such excess shall be paid by the Commission to the applicant. If, after making such subtractions, the sum of the credits in favor of the Commission exceeds the sum of the credits in favor of the applicant, such excess shall be paid by the applicant to the Com- mission. Upon such payment by the Commission or the applicant, such overpayments shall be treated as having been refunded and such deficiencies as having been paid. Purchase price. For the purposes of this subsection, the purchase price of a vessel on account of which a construction-differential subsidy was paid or agreed 49 Stat. 1998. to be paid under section 504 of the Merchant Marine Act, 1936, as .S.C5. amended, shall be the net cost of the vessel to the owner. Adjustment subjt (c) An adjustment shall be made under this section only if the appli- cant enters into an agreement with the Commission binding upon the citizen applicant and any affiliated interest to the effect that- (1) depreciation and amortization allowed or allowable with respect to the vessel up to the date of the enactment of this Act for Federal tax purposes shall be treated as not having been allowable; amounts credited to the Commission under subsection (b) (6) shall be treated for Federal tax purposes as not having been received or accrued as income; amounts credited to the applicant under subsection (b) (5) and (6) shall be treated for Federal tax purposes as having been received and accrued as income in the taxable -yearin which falls the date of the enactment of this Act; (2) the liability of the United States for use (exclusive of serv- ice, if any, required under the terms of the charter) of the vessel on or after the date of the enactment of this Act under any charter party shall not exceed 15 per centum per annum of the statutory sales price of the vessel as of such date of enactment; and the liability of the United States under any such charter party for loss of the vessel shall be determined on the basis of the statutory sales price as of the date of the enactment of this Act, depreciated to the date of loss at the rate of 5 per centum per annum; and (3) in the event the United States, prior to the termination of the existing national emergency declared by the President on 48 [60 STAT.
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