Great Lakes Domestic Shipping Inclusion

§ 1355. Definitions and special rules(a) DefinitionsFor purposes of this subchapter—(1) Electing corporationThe term “electing corporation” means any corporation for which an election is in effect under this subchapter. (2) Electing group; controlled group(A) Electing groupThe term “electing group” means a controlled group of which one or more members is an electing corporation. (B) Controlled groupThe term “controlled group” means any group which would be treated as a single employer under subsection (a) or (b) of section 52 if paragraphs (1) and (2) of section 52(a) did not apply. (3) Qualifying vessel operatorThe term “qualifying vessel operator” means any corporation—(A) who operates one or more qualifying vessels, and (B) who meets the shipping activity requirement in subsection (c). (4) Qualifying vesselThe term “qualifying vessel” means a self-propelled (or a combination self-propelled and non-self-propelled) United States flag vessel of not less than 6,000 deadweight tons used exclusively in the United States foreign trade during the period that the election under this subchapter is in effect. (5) United States flag vesselThe term “United States flag vessel” means any vessel documented under the laws of the United States. (6) United States domestic tradeThe term “United States domestic trade” means the transportation of goods or passengers between places in the United States. (7) United States foreign tradeThe term “United States foreign trade” means the transportation of goods or passengers between a place in the United States and a foreign place or between foreign places. (b) Operating a vesselFor purposes of this subchapter—(1) In generalExcept as provided in paragraph (2), a person is treated as operating any vessel during any period if—(A)(i) such vessel is owned by, or chartered (including a time charter) to, the person, or (ii) the person provides services for such vessel pursuant to an operating agreement, and (B) such vessel is in use as a qualifying vessel during such period. (2) Bareboat chartersA person is treated as operating and using a vessel that it has chartered out on bareboat charter terms only if—(A)(i) the vessel is temporarily surplus to the person’s requirements and the term of the charter does not exceed 3 years, or (ii) the vessel is bareboat chartered to a member of a controlled group which includes such person or to an unrelated person who sub-bareboats or time charters the vessel to such a member (including the owner of the vessel), and (B) the vessel is used as a qualifying vessel by the person to whom ultimately chartered. (c) Shipping activity requirementFor purposes of this section—(1) In generalExcept as otherwise provided in this subsection, a corporation meets the shipping activity requirement of this subsection for any taxable year only if the requirement of paragraph (4) is met for each of the 2 preceding taxable years.