Sets forth the terms and conditions under which qualifying entities may make and revoke qualifying shipping tax elections, including the effects of temporarily ceasing to operate such a vessel or temporarily operating such a vessel in the U.S. domestic trade.
Sets forth exclusions from gross income for electing entities. Allows a depreciation deduction for qualifying shipping assets for non-operating owners only. Disallows credits and deductions (including those for net operating loss) against tax imposed or income for electing corporations, as specified.
Permits the sale and subsequent replacement of qualifying shipping assets without recognized gain, as specified.
Treats certain income of merchant seaman as foreign earned income and therefore excludable from gross income.
Makes qualified vessels eligible for a certificate of inspection, as specified. Authorizes crews and operators of such vessels to make superceding agreements concerning controlling liability and damages for a crew member's injury or death when such owner/operator has approved evidence of financial responsibility.