{"identifier":"/us/usc/t26/s1356","title":26,"num":"\u00a7\u202f1356.","heading":"Qualifying shipping activities","text":"\u00a7\u202f1356.\nQualifying shipping activities\n(a)\nQualifying shipping activities\nFor purposes of this subchapter, the term \u201cqualifying shipping activities\u201d means\u2014\n(1) core qualifying activities,\n(2) qualifying secondary activities, and\n(3) qualifying incidental activities.\n(b)\nCore qualifying activities\nFor purposes of this subchapter, the term \u201ccore qualifying activities\u201d means activities in operating qualifying vessels in United States foreign trade.\n(c)\nQualifying secondary activities\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201cqualifying secondary activities\u201d means secondary activities but only to the extent that, without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 20 percent of the gross income derived by the corporation from its core qualifying activities.\n(2)\nSecondary activities\nThe term \u201csecondary activities\u201d means\u2014\n(A) the active management or operation of vessels other than qualifying vessels in the United States foreign trade,\n(B) the provision of vessel, barge, container, or cargo-related facilities or services to any person,\n(C) other activities of the electing corporation and other members of its electing group that are an integral part of its business of operating qualifying vessels in United States foreign trade, including\u2014\n(i) ownership or operation of barges, containers, chassis, and other equipment that are the complement of, or used in connection with, a qualifying vessel in United States foreign trade,\n(ii) the inland haulage of cargo shipped, or to be shipped, on qualifying vessels in United States foreign trade, and\n(iii) the provision of terminal, maintenance, repair, logistical, or other vessel, barge, container, or cargo-related services that are an integral part of operating qualifying vessels in United States foreign trade, and\n(D) such other activities as may be prescribed by the Secretary pursuant to regulations.\nSuch term shall not include any core qualifying activities.\n(d)\nQualifying incidental activities\nFor purposes of this section, the term \u201cqualified incidental activities\u201d means shipping-related activities if\u2014\n(1) they are incidental to the corporation\u2019s core qualifying activities,\n(2) they are not qualifying secondary activities, and\n(3) without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 0.1 percent of the corporation\u2019s gross income from its core qualifying activities.\n(e)\nApplication of gross income tests in case of electing group\nIn the case of an electing group, subsections (c)(1) and (d)(3) shall be applied as if such group were 1 entity, and the limitations under such subsections shall be allocated among the corporations in such group.","url":"https://projectusc.org/usc/t26/s1356.html","content":[{"t":"sec","id":"/us/usc/t26/s1356","children":[{"t":"num","text":"\u00a7\u202f1356."},{"t":"heading","text":"Qualifying shipping activities"},{"t":"subsec","id":"/us/usc/t26/s1356/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Qualifying shipping activities"},{"t":"chapeau","text":"For purposes of this subchapter, the term \u201cqualifying shipping activities\u201d means\u2014"},{"t":"para","id":"/us/usc/t26/s1356/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" core qualifying activities,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1356/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" qualifying secondary activities, and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1356/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" qualifying incidental activities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1356/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Core qualifying activities"},{"t":"content","children":[{"t":"p","text":"For purposes of this subchapter, the term \u201ccore qualifying activities\u201d means activities in operating qualifying vessels in United States foreign trade.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1356/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Qualifying secondary activities"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s1356/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201cqualifying secondary activities\u201d means secondary activities but only to the extent that, without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 20 percent of the gross income derived by the corporation from its core qualifying activities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1356/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Secondary activities"},{"t":"chapeau","text":"The term \u201csecondary activities\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t26/s1356/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the active management or operation of vessels other than qualifying vessels in the United States foreign trade,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1356/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the provision of vessel, barge, container, or cargo-related facilities or services to any person,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1356/c/2/C","children":[{"t":"num","text":"(C)"},{"t":"chapeau","text":" other activities of the electing corporation and other members of its electing group that are an integral part of its business of operating qualifying vessels in United States foreign trade, including\u2014"},{"t":"clause","id":"/us/usc/t26/s1356/c/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" ownership or operation of barges, containers, chassis, and other equipment that are the complement of, or used in connection with, a qualifying vessel in United States foreign trade,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1356/c/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the inland haulage of cargo shipped, or to be shipped, on qualifying vessels in United States foreign trade, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1356/c/2/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" the provision of terminal, maintenance, repair, logistical, or other vessel, barge, container, or cargo-related services that are an integral part of operating qualifying vessels in United States foreign trade, and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1356/c/2/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" such other activities as may be prescribed by the Secretary pursuant to regulations.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"Such term shall not include any core qualifying activities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1356/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Qualifying incidental activities"},{"t":"chapeau","text":"For purposes of this section, the term \u201cqualified incidental activities\u201d means shipping-related activities if\u2014"},{"t":"para","id":"/us/usc/t26/s1356/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" they are incidental to the corporation\u2019s core qualifying activities,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1356/d/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" they are not qualifying secondary activities, and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1356/d/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 0.1 percent of the corporation\u2019s gross income from its core qualifying activities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1356/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Application of gross income tests in case of electing group"},{"t":"content","children":[{"t":"p","text":"In the case of an electing group, subsections (c)(1) and (d)(3) shall be applied as if such group were 1 entity, and the limitations under such subsections shall be allocated among the corporations in such group.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}