
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC11]

 
                     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
 
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.

(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.)


                               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.''

                  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.
