46 CFR § 287.27 - Controlled corporation.

---
identifier: "/us/cfr/t46/s287.27"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 287.27 - Controlled corporation."
title_number: 46
title_name: "Shipping"
section_number: "287.27"
section_name: "Controlled corporation."
chapter_name: "MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "C"
subchapter_name: "REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS"
part_number: "287"
part_name: "ESTABLISHMENT OF CONSTRUCTION RESERVE FUNDS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 204, 511, 49 Stat. 1987, as amended, 54 Stat. 1106, as amended; 46 U.S.C. 1114, 1161."
regulatory_source: "General Order 38 (2d Rev.), 30 FR 7215, May 29, 1965; 30 FR 8162, June 25, 1965, unless otherwise noted."
cfr_part: "287"
---


# 287.27 Controlled corporation.

For the purpose of section 511 of the Act and the regulations in this part a new vessel is considered as constructed, reconstructed, reconditioned, or acquired by the taxpayer if constructed, reconstructed, reconditioned, or acquired by a corporation at a time when the taxpayer owns not less than 95 percent of the total number of shares of each class of stock of the corporation.