Internal Revenue Code:Sec. 1358. Allocation of credits, income, and deductions

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter R - Election to Determine Corporate Tax on Certain  
          International Shipping Activities Using Per Ton Rate
        

Statute

  SEC. 1358. ALLOCATION OF CREDITS, INCOME, AND DEDUCTIONS.

    (a) Qualifying Shipping Activities.--For purposes of this chapter, 
the qualifying shipping activities of an electing corporation shall be 
treated as a separate trade or business activity distinct from all other 
activities conducted by such corporation.
    (b) Exclusion of Credits or Deductions.--
            (1) No deduction shall be allowed against the notional 
        shipping income of an electing corporation, and no credit shall 
        be allowed against the tax imposed by section 1352(a)(2).
            (2) No deduction shall be allowed for any net operating 
        loss attributable to the qualifying shipping activities of any 
        person to the extent that such loss is carried forward by such 
        person from a taxable year preceding the first taxable year for 
        which such person was an electing corporation.

    (c) Transactions <<NOTE: Applicability.>> Not at Arm's Length.--
Section 482 applies in accordance with this subsection to a transaction 
or series of transactions--
            (1) as between an electing corporation and another person, 
        or
            (2) as between an person's qualifying shipping activities 
        and other activities carried on by it.

Miscellaneous

  Created by Pub.L.108-357,Sec.248(a), October 22, 2004.  Amendments made 
  by this section shall apply to taxable years beginning after the date of 
  the enactment of this Act.