Ca. Rev. and Tax. Code § 17088.3 - Applicability of IRC Section 7518

• Cite as: Ca. Rev. and Tax. Code § 17088.3

(a) Section 7518 of the Internal Revenue Code, relating to tax incentives relating to merchant marine capital construction funds, shall apply, except as otherwise provided.

(b) Section 7518(d)(2)(C) of the Internal Revenue Code is modified as follows:

(1) By substituting "70 percent" in lieu of the reference to "the percentage applicable under Section 243(a)(1)."

(2) To refer to Section 24402 in lieu of Section 243 of the Internal Revenue Code.

(c) Section 7518(d)(2)(D) of the Internal Revenue Code is modified to refer to "interest income exempt from taxation under this part" in lieu of "interest income exempt from taxation under Section 103."

(d) Section 7518(g)(3) of the Internal Revenue Code is modified as follows: