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2018 US Code
Title 46 - Shipping
Subtitle V - Merchant Marine
Part C - Financial Assistance Programs
Chapter 535 - Capital Construction Funds
Sec. 53507 - Nontaxation of deposits

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Citation 46 U.S.C. § 53507 (2018)
Section Name §53507. Nontaxation of deposits
Section Text

(a) Tax Treatment.—Subject to subsection (b), under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)—

(1) taxable income (determined without regard to this chapter and section 7518 of such Code (26 U.S.C. 7518)) for the taxable year shall be reduced by the amount deposited for the taxable year out of amounts referred to in section 53505(a)(1) of this title;

(2) a gain from a transaction referred to in section 53505(a)(3) of this title shall not be taken into account if an amount equal to the net proceeds (as defined in joint regulations) from the transaction is deposited in the fund;

(3) the earnings (including gains and losses) from the investment and reinvestment of amounts held in the fund shall not be taken into account;

(4) the earnings and profits of a corporation (within the meaning of section 316 of such Code (26 U.S.C. 316)) shall be determined without regard to this chapter and section 7518 of such Code (26 U.S.C. 7518); and

(5) in applying the tax imposed by section 531 of such Code (26 U.S.C. 531), amounts held in the fund shall not be taken into account.


(b) Condition.—This section applies to an amount only if the amount is deposited in the fund under the agreement within the time provided in joint regulations.
Source Credit

(Pub. L. 109–304, §8(c), Oct. 6, 2006, 120 Stat. 1594.)
Editorial Notes
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large)
53507 46 App.:1177(d). June 29, 1936, ch. 858, title VI, §607(d), 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. 1028; Pub. L. 99–514, title II, §261(e)(1), (2), Oct. 22, 1986, 100 Stat. 2215.
Publication Title United States Code, 2018 Edition, Title 46 - SHIPPING
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 46 - SHIPPING
Subtitle V - Merchant Marine
Part C - Financial Assistance Programs
CHAPTER 535 - CAPITAL CONSTRUCTION FUNDS
Sec. 53507 - Nontaxation of deposits
Contains section 53507
Date 2018
Laws In Effect As Of Date January 14, 2019
Positive Law Yes
Disposition standard
Statutes at Large References 49 Stat. 2005
52 Stat. 960
53 Stat. 1185
66 Stat. 764
72 Stat. 216
74 Stat. 216
75 Stat. 91, 570
84 Stat. 1028
100 Stat. 2215
120 Stat. 1594
Public Law References Public Law 85-637, Public Law 86-518, Public Law 87-45, Public Law 87-271, Public Law 91-469, Public Law 99-514, Public Law 109-304
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