### Question
What does qualifying secondary activities mean?


### Answer
**Qualifying secondary activities** has the following meaning in *26 U.S.C. § 1356*:

> secondary activities but only to the extent that, without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 20 percent of the gross income derived by the corporation from its core qualifying activities

#### Citation:
  - *26 U.S.C. § 1356*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter R-Election To Determine Corporate Tax on Certain International Shipping Activities Using Per Ton Rate**

