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Title 46, ShippingRelease 119-110

§53301 Definitions

Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 533 — CONSTRUCTION RESERVE FUNDS › § 53301

Last updated Sep 22, 2026|Official source

Summary

The chapter defines key words used in these rules. "Construction contract" means an agreement between a taxpayer who builds a new vessel in a shipyard they own and the Secretary of Transportation that includes the terms the Secretary thinks are needed to carry out the chapter. "New vessel" means a ship that was built in the United States after December 31, 1939, or built with certain federal subsidies or financing (including title V of the Merchant Marine Act, 1936, or financing under chapter 537 or 575), that is or will be documented under U.S. law, and that meets size or speed limits the Secretary sets (normally at least 2,000 gross tons and 12 knots unless the Secretary approves smaller for government needs) or was built to replace a government‑taken ship. It also covers vessels rebuilt for use only on the Great Lakes (including the Saint Lawrence River and Gulf) if the Secretary finds that helps the chapter’s goals. Other tax terms in the chapter have the same meanings as in chapter 1 of the Internal Revenue Code of 1986.

Full Legal Text

Title 46, §53301

Shipping, Source: USLM XML via OLRC

(a)In General.—
In this chapter:
(1)Construction contract.—
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)New vessel.—
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)Additional Tax-Related Terms.—
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).

Legislative History

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.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53301

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110