Certain companies with merchant marine capital construction funds receive up to a 25-year deferral of tax on that portion of their taxable income, which is set aside for construction, modernization, and major repair of ships. The federal provision also imposes rules where the taxpayer makes a qualified withdrawal (basis adjustment) or unqualified withdrawal (inclusion in income).
Origin: IRC § 7518(c), (g)(5); M.G.L. c. 63, § 30.3
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2018
FY2019
FY2020
FY2021
FY2022
Corporate Excise Tax
Deferrals of Gross Income
2.101
Deferral of Tax on Certain Shipping Companies
Certain companies with merchant marine capital construction funds receive up to a 25-year deferral of tax on that portion of their taxable income, which is set aside for construction, modernization, and major repair of ships. The federal provision also imposes rules where the taxpayer makes a qualified withdrawal (basis adjustment) or unqualified withdrawal (inclusion in income).
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00007518----000-.html" target="_blank">IRC § 7518(c), (g)(5)</a>; <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section30" target="_blank">M.G.L. c. 63, § 30.3</a>
0.8
0.8
0.8
0.8
0.8
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