A bill to amend section 883 of the Internal Revenue Code of 1954 with respect to exemption from taxation of earnings of ships under foreign flag.

Provides that the income derived from the operation of foreign ships and aircraft shall not be exempt from taxation under the Internal Revenue Code if a substantial part of the ownership and/or control of such ship, or ships, is vested in a citizen of the United States, or any partner, affiliate, or subsidiary of such citizen, and if such ship, or ships, regularly serves a port or ports of the United States, and if a substantial portion of the gross income of such ship, or ships, is derived from commerce of the United States. (Amends 26 U.S.C. 883)