26 U.S.C. § 1358 (2024)
This is the official text of 26 U.S.C. § 1358 (2024), part of Federal (US Code)’s United States Code — the codified general and permanent federal statutes of the United States, organized into more than 50 numbered titles by subject.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Allocation of credits, income, and deductions
Official statutory text
(a) Qualifying shipping activities
For purposes of this chapter, the qualifying shipping activities of an electing corporation shall be treated as a separate trade or business activity distinct from all other activities conducted by such corporation.
(b) Exclusion of credits or deductions
(1) No deduction shall be allowed against the notional shipping income of an electing corporation, and no credit shall be allowed against the tax imposed by section 1352(2).
(2) No deduction shall be allowed for any net operating loss attributable to the qualifying shipping activities of any person to the extent that such loss is carried forward by such person from a taxable year preceding the first taxable year for which such person was an electing corporation.
(c) Transactions not at arm's length
Section 482 applies in accordance with this subsection to a transaction or series of transactions—
(1) as between an electing corporation and another person, or
(2) as between a person's qualifying shipping activities and other activities carried on by it.
(Added Pub. L. 108–357, title II, §248(a), Oct. 22, 2004, 118 Stat. 1456; amended Pub. L. 115–141, div. U, title IV, §401(a)(188), (189), Mar. 23, 2018, 132 Stat. 1193.)
Editorial Notes
Amendments
2018—Subsec. (b)(1). Pub. L. 115–141, §401(a)(188), substituted "section 1352(2)" for "section 1352(a)(2)".
Subsec. (c)(2). Pub. L. 115–141, §401(a)(189), substituted "a person's" for "an person's".
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.
For purposes of this chapter, the qualifying shipping activities of an electing corporation shall be treated as a separate trade or business activity distinct from all other activities conducted by such corporation.
(b) Exclusion of credits or deductions
(1) No deduction shall be allowed against the notional shipping income of an electing corporation, and no credit shall be allowed against the tax imposed by section 1352(2).
(2) No deduction shall be allowed for any net operating loss attributable to the qualifying shipping activities of any person to the extent that such loss is carried forward by such person from a taxable year preceding the first taxable year for which such person was an electing corporation.
(c) Transactions not at arm's length
Section 482 applies in accordance with this subsection to a transaction or series of transactions—
(1) as between an electing corporation and another person, or
(2) as between a person's qualifying shipping activities and other activities carried on by it.
(Added Pub. L. 108–357, title II, §248(a), Oct. 22, 2004, 118 Stat. 1456; amended Pub. L. 115–141, div. U, title IV, §401(a)(188), (189), Mar. 23, 2018, 132 Stat. 1193.)
Editorial Notes
Amendments
2018—Subsec. (b)(1). Pub. L. 115–141, §401(a)(188), substituted "section 1352(2)" for "section 1352(a)(2)".
Subsec. (c)(2). Pub. L. 115–141, §401(a)(189), substituted "a person's" for "an person's".
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.
Status: in_force · Read it on the official government site
Need a lawyer in Federal (US Code)?
Find a Federal (US Code) lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.