46 U.S.C. § 50501

Entities deemed citizens of the United States

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(a)In General.—In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States.(b)Additional Requirements for Corporations.—In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)—(1) it is incorporated under the laws of the United States or a State;(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum.(c)Determination of Controlling Corporate Interest.—The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if—(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;(2) the majority of the voting power in the corporation is vested in citizens of the United States;(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States.(d)Determination of 75 Percent Corporate Interest.—At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if—(1) title to at least 75 percent of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;(2) at least 75 percent of the voting power in the corporation is vested in citizens of the United States;(3) there is no contract or understanding by which more than 25 percent of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and(4) there is no other means by which control of more than 25 percent of any interest in the corporation is given to or permitted to be exercised by a person not a citizen of the United States.(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1566.)

Historical and Revision Notes
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
50501(a)	46 App.:802(a) (words before 3d comma and after 11th comma).	Sept. 7, 1916, ch. 451, § 2(a)–(c), 39 Stat. 729; July 15, 1918, ch. 152, § 2, 40 Stat. 900; June 5, 1920, ch. 250, § 38, 41 Stat. 1008; Pub. L. 86–327, § 3, Sept. 21, 1959, 73 Stat. 597; Pub. L. 105–383, title IV, § 421, Nov. 13, 1998, 112 Stat. 3439.
	46 App.:1244(c).	June 29, 1936, ch. 858, title IX, § 905(c), 49 Stat. 2016; June 23, 1938, ch. 600, § 39(b), 52 Stat. 964; Pub. L. 86–327, § 4, Sept. 21, 1959, 73 Stat. 597.
50501(b)	46 App.:802(a) (words between 3d and 11th commas).
50501(c)	46 App.:802(b).
50501(d)	46 App.:802(c).

In subsection (a), the words “and with respect to a corporation under subchapter VI of this chapter, all directors of the corporation are citizens of the United States” in 46 App. U.S.C. 1244(c) are omitted because part A of subchapter VI contains the operating-differential subsidy program which, under 46 App. U.S.C. 1185a, is being phased out, and part B of subchapter VI contains the Maritime Security Fleet program which is being repealed (effective October 1, 2005) and replaced by chapter 531 of title 46 as enacted by the Maritime Security Act of 2003. Thus, subchapter VI is being omitted from the revised title and will instead appear as a note under section 53101. The words “and, in the case of a corporation, partnership, or association operating a vessel on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States the amount of interest required to be owned by a citizen of the United States shall be not less than 75 per centum” in 46 App. U.S.C. 1244(c) are omitted as covered by the 75 percent ownership requirement for operation in the coastwise trade.

In subsection (b)(1), the words “Territory, District, or possession thereof” are omitted because of the definition of “State” in chapter 1 of the revised title.

Notes of Decisions

Cited in 10 cases (4 in the last 5 years), 2008–2023 · leading case: Matson Navigation Co. v. U.S. Dep't of Transp., 895 F.3d 799 (D.C. Cir. 2018).

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Matson Navigation Co. v. U.S. Dep't of Transp., 895 F.3d 799 (D.C. Cir. 2018). · cites it 4× “MARAD's 2015 Approval Order stated that the replacement vessel's owner was "a citizen of the United States within the meaning of 46 U.S.C. § 50501 "; that the "[r]eplacement vessel will provide transportation in foreign commerce pursuant to the requirements of 46 U.”

OSG Prod. Tankers LLC v. United States, 82 Fed. Cl. 570 (Fed. Cl. 2008). “See 46 U.S.C. §§ 50501 , 55102 (2006). Citizens must own at least seventy-five percent of the corporation.”

Matson Navigation Co., Inc. v. DOT, 77 F.4th 1151 (D.C. Cir. 2023). “46 U.S.C. § 50501 ; see also id. § 53102(c).”

Matson Navigation Co., Inc. v. Dep't of Transp. (D.D.C. 2022). · cites it 8× “Defendants have moved to dismiss Matson’s complaint on the ground that MARAD’s invocation of 46 U.S.C. § 50501 as a partial basis for its order vested exclusive jurisdiction to review that order in the court of appeals.”

Matson Navigation Co., Inc. v. Dep't of Transp. (D.D.C. 2020). · cites it 7× “MARAD first argues that this Court lacks subject-matter jurisdiction over MARAD’s 2015 determination concerning the APL Guam because that decision was made, in part, pursuant to 46 U.S.C. § 50501 , and the courts of appeals have exclusive jurisdiction under the Hobbs Act, 28 U.”

Matson Navigation Co., Inc. v. Dep't of Transp. (D.D.C. 2022). · cites it 7× “§ 2342 (3)(A). At that time, Matson argued that the challenged orders fell within the scope of the Hobbs Act because they “involve[d] regulations and programs that are ‘interrelated’ with citizenship determinations in 46 U.”

Matson Navigation Co., Inc v. DOT (D.C. Cir. 2018). · cites it 4× “MARAD’s 2015 Approval Order stated that the replacement vessel’s owner was “a citizen of the United States within the meaning of 46 U.S.C. § 50501”; that the “[r]eplacement vessel will provide transportation in foreign commerce pursuant to the requirements of 46 U.”

Vectrus Servs. A/S v. United States (Fed. Cl. 2023). “570, 572 (2008) (alteration added) (citing 46 U.S.C. §§ 50501 , 55102 (2006)). Moreover, the United States and the Kingdom of Denmark have agreed to the Danish terms for contracting to support Thule Air Base, in accordance with the evolving relationship between the United States…”

In The Matter of the Complaint of Odfjell Chem. Tankers AS, Goldex Fortune Ltd., Odjfell Mgmt. AS & Odfjell Tankers AS, as Owners & Operators of the M/T Bow Fortune (S.D. Tex. 2020). “Pending before me is Claimants’ Motion to Bifurcate (“Motion to Bifurcate”). See Dkt.”

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