118 STAT. 1452 PUBLIC LAW 108–357—OCT. 22, 2004 subsection (a) for any taxable year before its 5th taxable year which begins after the 1st taxable year for which such termination is effective, unless the Secretary consents to such election. ‘‘SEC. 1355. DEFINITIONS AND SPECIAL RULES. ‘‘(a) DEFINITIONS.—For purposes of this subchapter— ‘‘(1) ELECTING CORPORATION.—The term ‘electing corpora tion’ means any corporation for which an election is in effect under this subchapter. ‘‘(2) ELECTING GROUP; CONTROLLED GROUP.— ‘‘(A) ELECTING GROUP.—The term ‘electing group’ means a controlled group of which one or more members is an electing corporation. ‘‘(B) CONTROLLED GROUP.—The term ‘controlled group’ means any group which would be treated as a single employer under subsection (a) or (b) of section 52 if para graphs (1) and (2) of section 52(a) did not apply. ‘‘(3) QUALIFYING VESSEL OPERATOR.—The term ‘qualifying vessel operator’ means any corporation— ‘‘(A) who operates one or more qualifying vessels, and ‘‘(B) who meets the shipping activity requirement in subsection (c). ‘‘(4) QUALIFYING VESSEL.—The term ‘qualifying vessel’ means a self propelled (or a combination self propelled and non self propelled) United States flag vessel of not less than 10,000 deadweight tons used exclusively in the United States foreign trade during the period that the election under this subchapter is in effect. ‘‘(5) UNITED STATES FLAG VESSEL.—The term ‘United States flag vessel’ means any vessel documented under the laws of the United States. ‘‘(6) UNITED STATES DOMESTIC TRADE.—The term ‘United States domestic trade’ means the transportation of goods or passengers between places in the United States. ‘‘(7) UNITED STATES FOREIGN TRADE.—The term ‘United States foreign trade’ means the transportation of goods or pas sengers between a place in the United States and a foreign place or between foreign places. ‘‘(8) CHARTER.—The term ‘charter’ includes an operating agreement. ‘‘(b) OPERATING A VESSEL.—For purposes of this subchapter— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), a person is treated as operating any vessel during any period if such vessel is— ‘‘(A) owned by, or chartered (including a time charter) to, the person, and ‘‘(B) is in use as a qualifying vessel during such period. ‘‘(2) BAREBOAT CHARTERS.—A person is treated as operating and using a vessel that it has chartered out on bareboat charter terms only if— ‘‘(A)(i) the vessel is temporarily surplus to the person’s requirements and the term of the charter does not exceed 3 years, or ‘‘(ii) the vessel is bareboat chartered to a member of a controlled group which includes such person or to an unrelated person who sub bareboats or time charters the
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