TREATMENT OF DEEP-DRAFT VESSELS.

SEC. 11166. TREATMENT OF DEEP-DRAFT VESSELS.(a) In General.—On and after the date of the enactment of this Act, the Secretary of the Treasury shall require that a vessel described in section 4042(c)(1) of the Internal Revenue Code of 1986 be considered a vessel for purposes of the registration of the operator of such vessel under section 4101 of such Code, unless such operator uses such vessel exclusively for purposes of the entry of taxable fuel.(b) Exemption for Domestic Bulk Transfers by Deep-Draft Vessels.—(1) In general.—Subparagraph (B) of section 4081(a)(1) (relating to tax on removal, entry, or sale) is amended to read as follows:“(B) Exemption for bulk transfers to registered terminals or refineries.—“(i) In general.—The tax imposed by this paragraph shall not apply to any removal or entry of a taxable fuel transferred in bulk by pipeline or vessel to a terminal or refinery if the person removing or entering the taxable fuel, the operator of such pipeline or vessel (except as provided in clause (ii)), and the operator of such terminal or refinery are registered under section 4101.119 STAT. 1977“(ii) Nonapplication of registration to vessel operators entering by deep-draft vessel.—For purposes of clause (i), a vessel operator is not required to be registered with respect to the entry of a taxable fuel transferred in bulk by a vessel described in section 4042(c)(1).”.(2) Effective date.—The amendment made by this subsection shall take effect on the date of the enactment of this Act.