(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:
(1) To refer to Article 6 (commencing with Section 19101) of Chapter 4 of Part 10.2 in lieu of Section 6601 of the Internal Revenue Code.
(2) To refer to Article 7 (commencing with Section 19131) of Chapter 4 of Part 10.2 in lieu of Section 6651 of the Internal Revenue Code.
(e) Section 7518(g)(6) of the Internal Revenue Code is modified as follows:
(1) By substituting a reference to “this part” in lieu of “Chapter 1” in each place in which it appears.
(2) To refer to Section 23151 in lieu of Section 11 of the Internal Revenue Code.
(3) The last sentence in Section 7518(g)(6)(A) of the Internal Revenue Code shall not apply.
(Added by Stats. 1997, Ch. 611, Sec. 77. Effective October 3, 1997.)