46 Usc 53503

Page 425
HISTORICAL AND REVISION NOTES
Revised
Section
53502 ..........

§ 53505

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1177(l) (2d
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(l) (2d sentence), 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. 1032; Pub. L. 97–31,
§ 12(97)(A), Aug. 6, 1981, 95
Stat. 162.

Subsection (a) is added for clarity because various
provisions of the source language for this chapter
imply that the Secretary is to prescribe regulations individually (except for regulations affecting a determination of tax liability). See, e.g., 46 App. U.S.C.
1177(a) (last sentence), (f)(1) (last sentence), and (l) (last
sentence).
In subsection (b), the words ‘‘not inconsistent with
the foregoing provisions of this section, as may be necessary or appropriate’’ are omitted as surplus.

§ 53503. Establishing a capital construction fund
(a) IN GENERAL.—A citizen of the United
States owning or leasing an eligible vessel may
make an agreement with the Secretary under
this chapter to establish a capital construction
fund for the vessel.
(b) ALLOWABLE PURPOSE.—The purpose of the
agreement shall be to provide replacement vessels, additional vessels, or reconstructed vessels,
built in the United States and documented
under the laws of the United States, for operation in the foreign or domestic trade of the
United States or in the fisheries of the United
States.

States foreign, Great Lakes, noncontiguous domestic,
or short sea transportation trade’’.
2007—Subsec. (b). Pub. L. 110–140 substituted ‘‘noncontiguous domestic, or short sea transportation
trade’’ for ‘‘or noncontiguous domestic trade’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

§ 53504. Deposits and withdrawals
(a) REQUIRED DEPOSITS.—An agreement to establish a capital construction fund shall provide
for the deposit in the fund of the amounts
agreed to be appropriate to provide for qualified
withdrawals under section 53509 of this title.
(b) APPLICABLE REQUIREMENTS.—Deposits in
and withdrawals from the fund are subject to
the requirements included in the agreement or
prescribed by the Secretary by regulation. However, the Secretary may not require a person to
deposit in the fund for a taxable year more than
50 percent of that portion of the person’s taxable
income for that year (as determined under section 53505(a)(1) of this title) that is attributable
to the operation of an agreement vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53504(a) ......

46 App.:1177(a) (2d
sentence related
to deposits).

53504(b) ......

46 App.:1177(a) (last
sentence).

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593;
Pub. L. 110–140, title XI, § 1122(b), Dec. 19, 2007,
121 Stat. 1762; Pub. L. 117–263, div. C, title XXXV,
§ 3545, Dec. 23, 2022, 136 Stat. 3100.)
HISTORICAL AND REVISION NOTES
Revised
Section
53503(a) ......

53503(b) ......

Source (U.S. Code)
46 App.:1177(a) (1st
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(a) (1st sentence),
(2d sentence related to
purpose), 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. 1026; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

46 App.:1177(a) (2d
sentence related
to purpose).

Editorial Notes
AMENDMENTS
2022—Subsec. (b). Pub. L. 117–263 substituted ‘‘foreign
or domestic trade of the United States’’ for ‘‘United

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(a) (2d sentence related to deposits), (last
sentence), 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. 1026; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

In subsection (a), the words ‘‘agreed to be appropriate’’ are substituted for ‘‘agreed upon as necessary
or appropriate’’ to eliminate unnecessary words.

§ 53505. Ceiling on deposits
(a) MAXIMUM DEPOSITS.—The amount deposited in a capital construction fund for a taxable
year may not exceed the sum of—
(1) that portion of the taxable income of the
owner or lessee for the taxable year (computed
under chapter 1 of the Internal Revenue Code
of 1986 (26 U.S.C. ch. 1) but without regard to
the carryback of net operating loss or net capital loss or this chapter) that is attributable
to the operation of agreement vessels in the
foreign or domestic trade of the United States
or in the fisheries of the United States;
(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;