Internal Revenue Code:Sec. 11. Tax imposed
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART II - TAX ON CORPORATIONS
Statute
Sec. 11. Tax imposed
(a) Corporations in general
A tax is hereby imposed for each taxable year on the taxable
income of every corporation.
(b) Amount of tax
(1) In general
The amount of the tax imposed by subsection (a) shall be the
sum of -
(A) 15 percent of so much of the taxable income as does not
exceed $50,000,
(B) 25 percent of so much of the taxable income as exceeds
$50,000 but does not exceed $75,000,
(C) 34 percent of so much of the taxable income as exceeds
$75,000 but does not exceed $10,000,000, and
(D) 35 percent of so much of the taxable income as exceeds
$10,000,000.
In the case of a corporation which has taxable income in excess
of $100,000 for any taxable year, the amount of tax determined
under the preceding sentence for such taxable year shall be
increased by the lesser of (i) 5 percent of such excess, or (ii)
$11,750. In the case of a corporation which has taxable income in
excess of $15,000,000, the amount of the tax determined under the
foregoing provisions of this paragraph shall be increased by an
additional amount equal to the lesser of (i) 3 percent of such
excess, or (ii) $100,000.
(2) Certain personal service corporations not eligible for
graduated rates
Notwithstanding paragraph (1), the amount of the tax imposed by
subsection (a) on the taxable income of a qualified personal
service corporation (as defined in section 448(d)(2)) shall be
equal to 35 percent of the taxable income.
(c) Exceptions
Subsection (a) shall not apply to a corporation subject to a tax
imposed by -
(1) section 594 (relating to mutual savings banks conducting
life insurance business),
(2) subchapter L (sec. 801 and following, relating to insurance
companies), or
(3) subchapter M (sec. 851 and following, relating to regulated
investment companies and real estate investment trusts).
(d) Foreign corporations
In the case of a foreign corporation, the taxes imposed by
subsection (a) and section 55 shall apply only as provided by
section 882.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 11; Mar. 30, 1955, ch. 18, Sec.
2, 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 2, 70 Stat. 66; Pub.
L. 85-12, Sec. 2, Mar. 29, 1957, 71 Stat. 9; Pub. L. 85-475, Sec.
2, June 30, 1958, 72 Stat. 259; Pub. L. 86-75, Sec. 2, June 30,
1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 201, June 30,
1960, 74 Stat. 290; Pub. L. 86-779, Sec. 10(d), Sept. 14, 1960, 74
Stat. 1009; Pub. L. 87-72, Sec. 2, June 30, 1961, 75 Stat. 193;
Pub. L. 87-508, Sec. 2, June 28, 1962, 76 Stat. 114; Pub. L. 88-52,
Sec. 2, June 29, 1963, 77 Stat. 72; Pub. L. 88-272, title I, Sec.
121, Feb. 26, 1964, 78 Stat. 25; Pub. L. 89-809, title I, Sec.
104(b)(2), Nov. 13, 1966, 80 Stat. 1557; Pub. L. 91-172, title IV,
Sec. 401(b)(2)(B), Dec. 30, 1969, 83 Stat. 602; Pub. L. 94-12,
title III, Sec. 303(a), (b), Mar. 29, 1975, 89 Stat. 44; Pub. L.
94-164, Sec. 4(a)-(c), Dec. 23, 1975, 89 Stat. 973, 974; Pub. L.
94-455, title IX, Sec. 901(a), Oct. 4, 1976, 90 Stat. 1606; Pub. L.
95-30, title II, Sec. 201(1), (2), May 23, 1977, 91 Stat. 141; Pub.
L. 95-600, title III, Sec. 301(a), Nov. 6, 1978, 92 Stat. 2820;
Pub. L. 97-34, title II, Sec. 231(a), Aug. 13, 1981, 95 Stat. 249;
Pub. L. 98-369, div. A, title I, Sec. 66(a), July 18, 1984, 98
Stat. 585; Pub. L. 99-514, title VI, Sec. 601(a), Oct. 22, 1986,
100 Stat. 2249; Pub. L. 100-203, title X, Sec. 10224(a), Dec. 22,
1987, 101 Stat. 1330-412; Pub. L. 100-647, title I, Sec.
1007(g)(13)(B), Nov. 10, 1988, 102 Stat. 3436; Pub. L. 103-66,
title XIII, Sec. 13221(a), (b), Aug. 10, 1993, 107 Stat. 477.)
Miscellaneous
AMENDMENTS
1993 - Subsec. (b)(1). Pub. L. 103-66, Sec. 13221(a)(3), inserted
at end of closing provisions ''In the case of a corporation which
has taxable income in excess of $15,000,000, the amount of the tax
determined under the foregoing provisions of this paragraph shall
be increased by an additional amount equal to the lesser of (i) 3
percent of such excess, or (ii) $100,000.''
Subsec. (b)(1)(C), (D). Pub. L. 103-66, Sec. 13221(a)(1), (2),
added subpars. (C) and (D) and struck out former subpar. (C) which
read as follows: ''34 percent of so much of the taxable income as
exceeds $75,000.''
Subsec. (b)(2). Pub. L. 103-66, Sec. 13221(b), substituted ''35
percent'' for ''34 percent''.
1988 - Subsec. (d). Pub. L. 100-647 substituted ''the taxes
imposed by subsection (a) and section 55'' for ''the tax imposed by
subsection (a)''.
1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ''The
amount of the tax imposed by subsection (a) shall be the sum of -
''(1) 15 percent of so much of the taxable income as does not
exceed $50,000,
''(2) 25 percent of so much of the taxable income as exceeds
$50,000 but does not exceed $75,000, and
''(3) 34 percent of so much of the taxable income as exceeds
$75,000.
In the case of a corporation which has taxable income in excess of
$100,000 for any taxable year, the amount of tax determined under
the preceding sentence for such taxable year shall be increased by
the lesser of (A) 5 percent of such excess, or (B) $11,750.''
1986 - Subsec. (b). Pub. L. 99-514 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ''The
amount of the tax imposed by subsection (a) shall be the sum of -
''(1) 15 percent (16 percent for taxable years beginning in
1982) of so much of the taxable income as does not exceed
$25,000;
''(2) 18 percent (19 percent for taxable years beginning in
1982) of so much of the taxable income as exceeds $25,000 but
does not exceed $50,000;
''(3) 30 percent of so much of the taxable income as exceeds
$50,000 but does not exceed $75,000;
''(4) 40 percent of so much of the taxable income as exceeds
$75,000 but does not exceed $100,000; plus
''(5) 46 percent of so much of the taxable income as exceeds
$100,000.
In the case of a corporation with taxable income in excess of
$1,000,000 for any taxable year, the amount of tax determined under
the preceding sentence for such taxable year shall be increased by
the lesser of (A) 5 percent of such excess, or (B) $20,250.''
1984 - Subsec. (b). Pub. L. 98-369 inserted ''In the case of a
corporation with taxable income in excess of $1,000,000 for any
taxable year, the amount of tax determined under the preceding
sentence for such taxable year shall be increased by the lesser of
(A) 5 percent of such excess, or (B) $20,250.''
1981 - Subsec. (b)(1). Pub. L. 97-34, Sec. 231(a)(1), substituted
''15 percent (16 percent for taxable years beginning in 1982)'' for
''17 percent''.
Subsec. (b)(2). Pub. L. 97-34, Sec. 231(a)(2), substituted ''18
percent (19 percent for taxable years beginning in 1982)'' for ''20
percent''.
1978 - Pub. L. 95-600 reduced corporate tax rates by substituting
provisions imposing a five-step tax rate structure on corporate
taxable income for provisions using a normal tax and surtax
approach to the taxation of corporate taxable income.
1977 - Subsec. (b)(1). Pub. L. 95-30, Sec. 201(1), substituted
''December 31, 1978'' for ''December 31, 1977''.
Subsec. (b)(2). Pub. L. 95-30, Sec. 201(1), substituted ''January
1, 1979'' for ''January 1, 1978'' in provisions preceding subpar.
(A).
Subsec. (d)(1). Pub. L. 95-30, Sec. 201(2), substituted
''December 31, 1978'' for ''December 31, 1977''.
Subsec. (d)(2). Pub. L. 95-30, Sec. 201(2), substituted ''January
1, 1979'' for ''January 1, 1978''.
1976 - Subsec. (a). Pub. L. 94-455 reenacted subsec. (a) without
change.
Subsec. (b). Pub. L. 94-455, among other changes, substituted
''December 31, 1977, 22 percent'' for ''December 31, 1976, 22
percent'' and ''after December 31, 1974 and before January 1,
1978'' for ''after December 31, 1974 and before January 1, 1977''
and struck out provisions relating to the six-month application of
the general rule.
Subsec. (c). Pub. L. 94-455 struck out provisions relating to the
special rule for 1976 for calendar year taxpayers.
Subsec. (d). Pub. L. 94-455, among other changes, substituted
provisions relating to surtax exemption of $25,000 for a taxable
year ending Dec. 31, 1977, or $50,000 for a taxable year ending
after Dec. 31, 1974, and before Jan. 1, 1978, for provisions
relating to surtax exemption of $50,000 for any taxable year and
struck out provisions relating to six-month application of the
general rule.
1975 - Subsec. (b). Pub. L. 94-164 redesignated existing pars.
(1) and (2) as pars. (1)(A) and (1)(B), and in par. (1)(A) as so
redesignated substituted ''after December 31, 1976'' for ''before
January 1, 1975 or after December 31, 1975'', and in par. (1)(B) as
so redesignated substituted ''January 1, 1977'' for ''January 1,
1976'', and added par. (2).
Pub. L. 94-12, Sec. 303(a), reduced the normal tax for a taxable
year ending after Dec. 31, 1974, and before Jan. 1, 1976, to 20
percent of so much of the taxable income as does not exceed $25,000
plus 22 percent of so much of the taxable income as exceeds
$25,000.
Subsec. (c). Pub. L. 94-164 designated existing provisions as
par. (1), struck out special percentages for taxable years
beginning before Jan. 1, 1964, and after Dec. 31, 1963 and before
Jan. 1, 1965, and added par. (2).
Subsec. (d). Pub. L. 94-164 designated existing provisions as
par. (1), substituted ''$50,000'' for ''$25,000'', inserted
reference to section 1564 of this title, and added par. (2).
Pub. L. 94-12, Sec. 303(b), substituted ''$50,000'' for
''$25,000''.
1969 - Subsec. (d). Pub. L. 91-172 substituted ''section 1561 or
1564'' for ''section 1561''.
1966 - Subsec. (e)(4). Pub. L. 89-809, Sec. 104(b)(2)(A), struck
out par. (4) which made reference to section 881(a) (relating to
foreign corporations not engaged in business in United States).
Subsec. (f). Pub. L. 89-809, Sec. 104(b)(2)(B), added subsec.
(f).
1964 - Subsec. (b). Pub. L. 88-272 applied the 30 percent tax to
years beginning before Jan. 1, 1964 instead of July 1, 1964 in par.
(1), and in par. (2), reduced the rate from 25 percent to 22
percent, and applied it to years beginning after Dec. 31, 1963,
instead of June 30, 1964.
Subsec. (c). Pub. L. 88-272 increased the percentage from 22 to
28 for taxable years beginning after Dec. 31, 1963, and before Jan.
1, 1965, and to 26 percent for taxable years beginning after Dec.
31, 1964. The surtax exemption previously carried in subsec. (c),
is now stated in subsec. (d).
Subsecs. (d), (e). Pub. L. 88-272 added subsec. (d) and
redesignated former subsec. (d) as (e).
1963 - Subsec. (b). Pub. L. 88-52 substituted ''July 1, 1964''
for ''July 1, 1963'' and ''June 30, 1964'' for ''June 30, 1963''
wherever appearing.
1962 - Subsec. (b). Pub. L. 87-508 substituted ''July 1, 1963''
for ''July 1, 1962'' and ''June 30, 1963'' for ''June 30, 1962''
wherever appearing.
1961 - Subsec. (b). Pub. L. 87-72 substituted ''July 1, 1962''
for ''July 1, 1961'' and ''June 30, 1962'' for ''June 30, 1961''
wherever appearing.
1960 - Subsec. (b). Pub. L. 86-564 substituted ''July 1, 1961''
for ''July 1, 1960'' and ''June 30, 1961'' for ''June 30, 1960''
wherever appearing.
Subsec. (d)(3). Pub. L. 86-779 inserted ''and real estate
investment trusts'' after ''regulated investment companies''.
1959 - Subsec. (b). Pub. L. 86-75 substituted ''July 1, 1960''
for ''July 1, 1959'' and ''June 30, 1960'' for ''June 30, 1959''
wherever appearing.
1958 - Subsec. (b). Pub. L. 85-475 substituted ''July 1, 1959''
for ''July 1, 1958'' and ''June 30, 1959'' for ''June 30, 1958''
wherever appearing.
1957 - Subsec. (b). Pub. L. 85-12 substituted ''July 1, 1958''
for ''April 1, 1957'' and ''June 30, 1958'' for ''March 31, 1957''
wherever appearing.
1956 - Subsec. (b). Act Mar. 29, 1956, substituted ''April 1,
1957'' for ''April 1, 1956'' and ''March 31, 1957'' for ''March 31,
1956'' wherever appearing.
1955 - Subsec. (b). Act Mar. 30, 1955, substituted ''April 1,
1956'' for ''April 1, 1955'' and ''March 31, 1956'' for ''March 31,
1955'' wherever appearing.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13221(d) of Pub. L. 103-66 provided that: ''The
amendments made by this section (amending this section and sections
852, 1201, and 1445 of this title) shall apply to taxable years
beginning on or after January 1, 1993; except that the amendment
made by subsection (c)(3) (amending section 1445 of this title)
shall take effect on the date of the enactment of this Act (Aug.
10, 1993).''
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10224(b) of Pub. L. 100-203 provided that: ''The
amendment made by subsection (a) (amending this section) shall
apply to taxable years beginning after December 31, 1987.''
EFFECTIVE DATE OF 1986 AMENDMENT
Section 601(b) of Pub. L. 99-514 provided that:
''(1) In general. - The amendment made by subsection (a)
(amending this section) shall apply to taxable years beginning on
or after July 1, 1987.
''(2) Cross reference. -
''For treatment of taxable years which include July 1, 1987,
see section 15 of the Internal Revenue Code of 1986.''
EFFECTIVE DATE OF 1984 AMENDMENT
Section 66(c) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - The amendments made by this section (amending
this section and section 1561 of this title) shall apply to taxable
years beginning after December 31, 1983.
''(2) Amendments not treated as changed in rate of tax. - The
amendments made by this subsection (probably should be ''section'')
shall not be treated as a change in a rate of tax for purposes of
section 21 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954).''
EFFECTIVE DATE OF 1981 AMENDMENT
Section 231(c) of Pub. L. 97-34 provided that: ''The amendments
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1981.''
EFFECTIVE DATE OF 1978 AMENDMENT
Section 301(c) of Pub. L. 95-600 provided that: ''The amendments
made by this section (amending this section and sections 12, 57,
244, 247, 511, 527, 528, 802, 821, 826, 852, 857, 882, 907, 922,
962, 1351, 1551, 1561, 6154, and 6655 of this title) shall apply to
taxable years beginning after December 31, 1978.''
EFFECTIVE DATE OF 1976 AMENDMENT
Section 901(d) of Pub. L. 94-455 provided that: ''The amendment
made by subsection (a) (amending this section) shall take effect on
December 23, 1975. The amendments made by subsection (b) (amending
section 821 of this title) shall apply to taxable years ending
after December 31, 1974. The amendments made by subsection (c)
(amending sections 21, 1561, and 6154 of this title) shall apply to
taxable years ending after December 31, 1975.''
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENTS
Section 4(e) of Pub. L. 94-164 provided that: ''The amendments
made by subsections (b), (c), and (d) (amending this section and
sections 21, 962, and 1561 of this title) apply to taxable years
beginning after December 31, 1975. The amendment made by subsection
(c) (amending this section) ceases to apply for taxable years
beginning after December 31, 1976.''
Section 305(b)(1) of Pub. L. 94-12 provided that: ''The
amendments made by section 303 (amending this section and sections
12, 962, and 1561 of this title and enacting provisions set out as
a note under this section) shall apply to taxable years ending
after December 31, 1974. The amendments made by subsections (b) and
(c) of such section (amending this section and sections 12, 962,
and 1561 of this title and enacting provisions set out as a note
under this section) shall cease to apply for taxable years ending
after December 31, 1975.''
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable with respect to taxable
years beginning after Dec. 31, 1969, see section 401(h)(2) of Pub.
L. 91-172, set out as a note under section 1561 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Section 104(n) of Pub. L. 89-809 provided that: ''The amendments
made by this section (other than subsection (k)) (enacting section
6683 to this title and amending this section and sections 245, 301,
512, 542, 543, 545, 819, 821, 822, 831, 832, 841, 842, 881, 882,
884, 952, 953, 1249, 1442, and 6016 of this title) shall apply with
respect to taxable years beginning after December 31, 1966. The
amendment made by subsection (k) (amending section 1248(d)(4) of
this title) shall apply with respect to sales or exchanges
occurring after December 31, 1966.''
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272, except for purposes of section 21 of
this title, effective with respect to taxable years beginning after
Dec. 31, 1963, see section 131 of Pub. L. 88-272, set out as a note
under section 1 of this title.
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-779 applicable with respect to taxable
years of real estate investment trusts beginning after Dec. 31,
1960, see section 10(k) of Pub. L. 86-779, set out as an Effective
Date note under section 856 of this title.
ALLOCATION OF 1975 TAXABLE INCOME AMONG COMPONENT MEMBERS OF
CONTROLLED GROUP OF CORPORATIONS
Section 303(c)(1) of Pub. L. 94-12 provided in part that: ''In
applying subsection (b)(2) of section 11 (subsec. (b)(2) of this
section), the first $25,000 of taxable income and the second
$25,000 of taxable income shall each be allocated among the
component members of a controlled group of corporations in the same
manner as the surtax exemption is allocated.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 15, 59, 80, 244, 247,
280C, 453A, 460, 468B, 511, 527, 594, 774, 801, 804, 831, 835, 847,
852, 857, 860E, 860G, 860K, 882, 891, 904, 907, 954, 962, 1201,
1291, 1293, 1351, 1374, 1375, 1381, 1446, 1551, 1561, 4942, 6033,
6242, 6425, 6655, 7518, 7704 of this title; title 46 App. section
1177.
