Construction Reserve Fund

(a) Definitions Section 53301(a) of title 46, United States Code, is amended— (1) in paragraph (1), by striking a new vessel and inserting an eligible vessel; (2) in paragraph (2)— (A) in the paragraph heading, by striking New vessel and inserting Eligible vessel; (B) in the matter preceding subparagraph (A), by striking new vessel and inserting eligible vessel; and (C) in subparagraph (A)— (i) in clause (i), by striking after December 31, 1939; (ii) in clause (ii), by striking and after the semicolon; (iii) by redesignating clause (iii) as clause (iv); and (iv) by inserting after clause (ii), the following: (iii) operated in foreign commerce or domestic commerce of the United States or in the fisheries; and; and (3) by adding at the end the following: (3) Foreign commerce The term foreign commerce means— (A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and (B) commerce or trade between foreign countries.. (b) Authority for Construction Reserve Funds Section 53302(a) of title 46, United States Code, is amended by striking or acquisition of a new vessel and inserting repowering, or acquisition of an eligible vessel. (c) Persons eligible To establish funds Section 53303 of title 46, United States Code, is amended— (1) by striking the matter preceding paragraph (1) and inserting the following: A citizen of the United States may make an agreement with the Secretary of Transportation under this chapter to establish a construction reserve fund if that citizen—; (2) in paragraph (1), by striking in the foreign or domestic commerce of the United States and inserting documented under the laws of the United States and operating in foreign commerce or domestic commerce of the United States; (3) in paragraph (2), by striking being operated in the foreign or domestic commerce of the United States and inserting documented under the laws of the United States and operating in foreign commerce or domestic commerce of the United States; (4) in paragraph (3), by striking in the foreign or domestic commerce of the United States and inserting documented under the laws of the United States and operating in foreign commerce or domestic commerce of the United States; (5) in paragraph (4)— (A) by striking being operated in the foreign or domestic commerce of the United States and inserting documented under the laws of the United States and operating in foreign commerce or domestic commerce of the United States; and (B) by striking or after the semicolon; (6) in paragraph (5)— (A) by striking in the foreign or domestic commerce of the United States and inserting documented under the laws of the United States to operate in foreign commerce or domestic commerce of the United States; and (B) by striking the period at the end and inserting; or; and (7) by adding at the end the following: (6) commits, as a part of the agreement with the Secretary under this chapter, to construct, reconstruct, recondition, repower, or acquire, and operate, an eligible vessel by not later than 5 years after the date on which the construction reserve fund is established.. (d) Vessel ownership Section 53304 of title 46, United States Code, is amended by striking constructed or acquired each place the term appears and inserting constructed, reconstructed, reconditioned, repowered, or acquired. (e) Basis for determining gain or loss Section 53307 of title 46, United States Code, is amended— (1) in the section heading, by striking new vessels and inserting eligible vessels; (2) by striking a new vessel and inserting an eligible vessel; (3) by striking the new vessel and inserting the eligible vessel; (4) by inserting repowered, after reconditioned,; and (5) by inserting repowering, after reconditioning,. (f) Obligation of deposits Section 53310 of title 46, United States Code, is amended— (1) in subsection (a)— (A) by striking a new vessel each place the term appears and inserting an eligible vessel; and (B) in paragraph (1)(A), by striking or reconditioning and inserting, repowering, or reconditioning; and (2) by striking subsections (b) and (c) and inserting the following: (b) Additional requirements for certain vessels In addition to the requirements of subsection (a)(1), for an eligible vessel not constructed under the construction-differential program or not bought from the Secretary of Transportation, construction shall commence with reasonable dispatch after the date of the construction contract, as determined by the Secretary of Transportation and certified by such Secretary to the Secretary of the Treasury. (c) Extensions The Secretary of Transportation may grant extensions of the period within which the deposits must be expended or obligated, except that such extensions may not be for a total of more than 15 years for the expenditure or obligation of deposits.. (g) Clerical amendment The table of sections for chapter 533 of title 46, United States Code, is amended by striking the item relating to section 53307 and inserting the following: 53307. Basis for determining gain or loss and for depreciating eligible vessels..