Operating A Vessel Law and Legal Definition
According to 26 USCS § 1355 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes And Surtaxes; Subchapter R. Election To Determine Corporate Tax On Certain International Shipping; Activities Using Per Ton Rate], a person is treated as operating any vessel during any period if
(A) (i) such vessel is owned by, or chartered (including a time charter) to, the person, or
(ii) the person provides services for such vessel pursuant to an operating agreement, and
(B) such vessel 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 vessel to such a member (including the owner of the vessel), and
(B) the vessel is used as a qualifying vessel by the person to whom ultimately chartered.
