26 U.S.C. § 1356 — Qualifying shipping activities

(a) “Qualifying shipping activities” means (1) core qualifying activities, (2) qualifying secondary activities, and (3) qualifying incidental activities. (b) “Core qualifying activities” means operating qualifying vessels in United States foreign trade^*. (c)(1) “Qualifying secondary activities” means secondary activities, but only up to the point where the corporation’s gross income from them, without applying this subchapter, is no more than 20% of its gross income from core qualifying activities. (c)(2) “Secondary activities” means: (A) actively managing or operating nonqualifying vessels in United States foreign trade; (B) providing vessel, barge, container, or cargo facilities or services to any person; (C) other activities of the electing corporation^* and its electing-group members that are an integral part of operating qualifying vessels in United States foreign trade, including (i) owning or operating barges, containers, chassis, and other equipment that complement or are used with such a vessel, (ii) inland hauling of cargo shipped or to be shipped on such vessels, and (iii) terminal, maintenance, repair, logistical, or other vessel-, barge-, container-, or cargo-related services that are an integral part of operating such vessels; and (D) other activities the Secretary^* prescribes by regulation. “Secondary activities” does not include core qualifying activities. (d) “Qualified incidental activities” means shipping-related activities that (1) are incidental to the corporation’s core qualifying activities, (2) are not qualifying secondary activities, and (3) produce no more than 0.1% of the corporation’s gross income from core qualifying activities, without applying this subchapter. (e) For an electing group^*, the 20% and 0.1% tests apply as though the group were one entity. The limits are allocated among the group’s corporations.