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Title 46, ShippingRelease 119-110

§53505 Ceiling on Deposits

Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 535 — CAPITAL CONSTRUCTION FUNDS › § 53505

Last updated Sep 22, 2026|Official source

Summary

Caps yearly deposits into a capital construction fund. The cap is the sum of four things: the part of your taxable income for the year that comes from operating agreement vessels in U.S. foreign or domestic trade or U.S. fisheries (computed under chapter 1 of the Internal Revenue Code without carrybacks); the deduction allowed under section 167 (26 U.S.C. 167) for those vessels; any net proceeds from selling a vessel or from insurance for it if not already counted; and earnings on the fund. If you are a lessee, the amount you may deposit for the section 167 deduction must be reduced by any amount the owner is required or allowed to deposit for that vessel for the same period.

Full Legal Text

Title 46, §53505

Shipping, Source: USLM XML via OLRC

(a)Maximum Deposits.—
The amount deposited in a capital construction fund for a taxable year may not exceed the sum of— (1)
(2)the amount allowable as a deduction under section 167 of such Code (26 U.S.C. 167) for the taxable year for agreement vessels;
(3)if the transaction is not taken into account for purposes of paragraph (1), the net proceeds (as defined in joint regulations) from the disposition of an agreement vessel or from insurance or indemnity attributable to an agreement vessel; and
(4)the receipts from the investment or reinvestment of amounts held in the fund.
(b)Reductions for Lessees.—
For a lessee, the maximum amount that may be deposited for an agreement vessel under subsection (a)(2) for any period shall be reduced by any amount the owner is required or permitted, under the capital construction fund agreement, to deposit for that period for the vessel under subsection (a)(2).

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5350546 App.:1177(b)(1), (2).June 29, 1936, ch. 858, title VI, § 607(b)(1), (2), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23–28, 52 Stat. 960; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; July 17, 1952, ch. 939, §§ 17–19, 66 Stat. 764; Pub. L. 85–637, Aug. 14, 1958, 72 Stat. 216; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–45, § 6, May 27, 1961, 75 Stat. 91; Pub. L. 87–271, Sept. 21, 1961, 75 Stat. 570; restated Pub. L. 91–469, § 21(a), Oct. 21, 1970, 84 Stat. 1027. In subsection (a)(1), the word “trade” is substituted for “commerce” for consistency in the chapter.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53505

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110