,,ii  #aac? ,,congress  #a/ ,session    
,s4 #addi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #a1 #bjac ,mr4  
,rockefell] introduc$ ! foll[+ bill2 :i*
 0 read twice & ref]r$ to ! ,committee  
on ,f9ance  ,a ,,bill  ,to am5d !       
,int]nal ,rev5ue ,code ( #aihf to       
provide t income attributable to c]ta9  
pass5g] cruise voyages beg9n+ or end+ 9 
! ,unit$ ,/ates %all be treat$ z        
effectively connect$ ) ! conduct ( a    
trade or bus9ess )9 ! ,unit$ ,/ates4    
#a4 ,taxation ( ,unit$ ,/ates cruise    
indu/ry income ( nonresid5t ali5s &     
=eign corporations  7a7 ,unit$ ,/ates   
,cruise indu/ry income treat$ z         
effectively connect$ to ! conduct ( a   
trade or bus9ess )9 ! ,unit$ ,/ates     
7#a7 ,income f s\rces )\t ! ,unit$      
,/ates  7,a7 ,9 g5]al ,p>agraph 7#d7 (  
section #hfd7;c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by r$esignat+    
subp>agraph 7,d7 z subp>agraph 7,e7 & by
 ins]t+ aft] subp>agraph 7,c7 ! foll[+  
new subp>agraph3  7,d7 ,unit$ ,/ates    

cruise indu/ry income  7i7 ,9 g5]al     
,unit$ ,/ates cruise indu/ry income %all
 be treat$ z effectively connect$ ) !   
conduct ( a trade or bus9ess )9 ! ,unit$
 ,/ates4  7ii7 ,unit$ ,/ates cruise     
indu/ry income ,= purposes ( ?is        
subp>agraph1 ! t]m ,unit$ ,/ates cruise 
indu/ry income means income attributable
 to any cov]$ pass5g] cruise 7z def9$ 9 
p>agraph 7#h771 includ+ income directly 
or indirectly attributable to ! c>riage 
( pass5g]s & any on-bo>d or (f-bo>d     
activities incid5tal to su* cov]$       
pass5g] cruise4  4  7,b7 ,cov]$ pass5g] 
cruise ,subsection 7c7 ( section #hfd ( 
su* ,code is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#h7 ,cov]$       
pass5g] cruise ,= purposes ( p>agraph   
7#d77;,c7--  7,a7 ,def9ition  7i7 ,9    
g5]al ,! t]m cov]$ pass5g] cruise means 
a voyage ( a comm]cial pass5g] cruise   
vessel--  7,i7 t ext5ds ov] #a or m     
nights1 &  7,,ii7 dur+ :i* pass5g]s     
emb>k or disemb>k ! vessel 9 ! ,unit$   
,/ates4  7ii7 ,exceptions = c]ta9       

voyages ,su* t]m %all n include any     
voyage--  7,i7 on any vessel own$ or    
op]at$ by ! ,unit$ ,/ates1 a ,/ate1 or  
any subdivision !re(1  7,,ii7 :i* occurs
 exclusively on ! inl& wat]ways ( !     
,unit$ ,/ates1 or  7,,iii7 9 :i* a      
vessel 9 ! usual c\rse ( employm5t      
proce$s1 )\t an int]v5+ =eign port (    
call f "o port or place 9 ! ,unit$      
,/ates to ! same port or place or to    
ano!r port or place 9 ! ,unit$ ,/ates4  
7,b7 ,pass5g] cruise vessel ,= purposes 
( subp>agraph 7,a7--  7i7 ,9 g5]al ,!   
t]m pass5g] cruise vessel means any     
pass5g] vessel hav+ b]? or /at]oom      
accommodations = at lea/ #bej pass5g]s4 
7ii7 ,exceptions ,su* t]m %all n include
 any f]ry1 recreational vessel1 sail+   
s*ool vessel1 small pass5g] vessel1     
(f%ore supply vessel1 or any o!r vessel 
det]m9$ "u regulations by ! ,secret>y to
 be exclud$ f ! application ( ?is "p4   
7iii7 ,def9itions ,any t]m us$ 9 ?is    
section :i* is us$ 9 *apt] #ba ( title  
#df1 ,unit$ ,/ates ,code1 %all h ! mean+

 giv5 su* t]m "u section #baja ( su*    
title4  4  7,c7 ,con=m+ am5dm5t         
,subp>agraph 7,a7 ( section #hfd7;c77#d7
 ( su* ,code is am5d$ by /rik+          
subp>agraphs 7,b7 & 7,c7 & ins]t+       
subp>agraphs 7,b71 7,c71 & 7,d74  7#b7  
,income f s\rces )9 ! ,unit$ ,/ates     
,p>agraph 7#d7 ( section #hhg7;b7 ( su* 
,code is am5d$ by add+ at ! end ! foll[+
 flu% s5t5ce3  ,! prec$+ s5t5ce %all n  
apply to ) respect to any ,unit$ ,/ates 
s\rce gross transportation income :i* is
 ,unit$ ,/ates cruise indu/ry income 7z 
def9$ 9 section #hfd7;c77#d77;,c77ii774 
4  7b7 ,repeal ( exemption f gross      
income = c]ta9 taxpay]s  7#a7           
,nonresid5t ali5s ,p>agraph 7#a7 (      
section #hgb7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by ins]t+ 7o!r   
?an ,unit$ ,/ates cruise indu/ry income 
7z def9$ 9 section #hfd7;c77#d77;,c777  
aft] or %ips4  7#b7 ,=eign corporations 
,p>agraph 7#a7 ( section #hhc7;a7 ( su* 
,code is am5d$ by ins]t+ 7o!r ?an ,unit$
 ,/ates cruise indu/ry income 7z def9$ 9

 section #hfd7;c77#d77;,c777 aft] or    
%ips4  7c7 ,income tax treaties ,section
 #hid ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7d7 ,special rule = ,unit$ 
,/ates cruise indu/ry income ,not)/&+   
subsection 7a71 no tax exemption or     
r$uc$ tax rate %all be p]mitt$ "u any   
treaty ( ! ,unit$ ,/ates ) respect to   
,unit$ ,/ates cruise indu/ry income 7z  
def9$ 9 section #hfd7;c77#d77;,c774  4  
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to income        
attributable to voyages made aft] ! date
 ( ! enactm5t ( ?is ,act4