§53301 — Title 46 Shipping | U.S. Code

Summary

Defines two key words used later: "construction contract" and "new vessel." Construction contract: when a taxpayer builds a new ship in a shipyard they own, an agreement between that taxpayer and the Secretary of Transportation can serve as the construction contract if it includes whatever terms the Secretary thinks are needed to carry out the chapter. New vessel: a ship that meets all of these rules — it was built in the United States after December 31, 1939 (or built with a title V subsidy or with financing or a financing guarantee under chapters 537 or 575), is documented or agreed to be documented under U.S. law, and is either suitable for high seas or Great Lakes service and generally at least 2,000 gross tons and 12 knots (unless the Secretary approves a smaller or slower ship for government wartime use), or was built to replace a government‑bought or requisitioned ship. It also includes ships rebuilt just for Great Lakes use (including the Saint Lawrence River and Gulf) if the Secretary finds that rebuilding supports the chapter’s goals. Other terms used here have the same meanings as in chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. ch. 1).

Title 46, §53301

Shipping — Source: USLM XML via OLRC

(a)In this chapter:

(1)The term “construction contract” includes, for a taxpayer constructing a new vessel in a shipyard owned by that taxpayer, an agreement between the taxpayer and the Secretary of Transportation for that construction containing provisions the Secretary considers advisable to carry out this chapter.

(2)The term “new vessel” means—

(A)a vessel—

(i)constructed in the United States after December 31, 1939, constructed with a construction-differential subsidy under title V of the Merchant Marine Act, 1936, or constructed with financing or a financing guarantee under chapter 537 or 575 of this title;

(ii)documented or agreed with the Secretary to be documented under the laws of the United States; and

(iii)(I)of a type, size, and speed that the Secretary determines is suitable for use on the high seas or Great Lakes in carrying out this subtitle, but not less than 2,000 gross tons or less than 12 knots speed unless the Secretary certifies in each case that a vessel of lesser tonnage or speed is desirable for use by the United States Government in case of war or national emergency; or

(II)constructed to replace a vessel bought or requisitioned by the Government; and

(B)a vessel reconstructed or reconditioned for use only on the Great Lakes, including the Saint Lawrence River and Gulf, if the Secretary finds that the reconstruction or reconditioning will promote the objectives of this subtitle.

(b)Other terms used in this chapter have the same meaning as in chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. ch. 1).

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53301(a)(1)46 App.:1161(n).June 29, 1936, ch. 858, title V, § 511(n), as added Dec. 23, 1944, ch. 714, § 2, 58 Stat. 920; Pub. L. 97–31, § 12(92)(A), Aug. 6, 1981, 95 Stat. 161. 53301(a) (2)(A)46 App.:1161(a).June 29, 1936, ch. 858, title V, § 511(a), as added Oct. 10, 1940, ch. 849, 54 Stat. 1106; Pub. L. 97–31, § 12(92)(A), Aug. 6, 1981, 95 Stat. 161. 53301(a) (2)(B)46 App.:1161(o).June 29, 1936, ch. 858, title V, § 511(o), as added July 17, 1952, ch. 939, § 14, 66 Stat. 764; Pub. L. 97–31, § 12(92)(A), Aug. 6, 1981, 95 Stat. 161. 53301(b)46 App.:1161(m).June 29, 1936, ch. 858, title V, § 511(m), as added Oct. 10, 1940, ch. 849, 54 Stat. 1108. In subsection (a)(2)(A)(i), the words “constructed with a

Construction

-differential subsidy under title V of the Merchant Marine Act, 1936, or constructed with financing or a financing guarantee under chapter 537 or 575 of this title” are substituted for “the

Construction

of which has been financed under subchapters V or VII of this chapter, or the

Construction

of which has been aided by a mortgage insured under subchapter XI of this chapter” because of the reorganization of the material and the omission from the revised title of the provisions relating to the

Construction

-differential subsidy program. Subsection (a)(2)(B) is substituted for the source provision to state more directly that a vessel described in the source provision is a new vessel for purposes of this chapter.

Editorial Notes

References in Text

The Merchant Marine Act, 1936, referred to in subsec. (a)(2)(A)(i), is act June 29, 1936, ch. 858, 49 Stat. 1985. Title V of the Act enacted provisions set out as notes under section 53101 of this title. For complete classification of this Act to the Code, see

Short Title

of 1936 Amendment note set out under section 101 of this title and Tables.

§53301 Definitions

Summary

Title 46, §53301

Notes & Related Subsidiaries

Historical and Revision Notes

Construction

Construction

Construction

Construction

Editorial Notes

References in Text

Short Title

Citations & Metadata