SEC. 5-Continued (b) (revised 1964)—Continued Applicability: Taxable years beginning after December 31, 1963. (Id., § 232(g) (1), 78 Stat. 112. See "Applicability" with respect to amendment of Part I of Subchapter Q of Chapter 1, p. 486 below.) CH. 1, SUBCH. A, PART II-TAX ON CORPORATIONS (68A Stat. 11): NOTE: The table of sections for Part II of Subchapter A of Chapter 1 reads as follows (68A Stat. 11): "Sec. 11. Tax imposed. "Sec. 12. Cross references relating to tax on corporations." This table has not been amended. SEC. 11. TAX IMPOSED (68A Stat. 11): Mar. 30, 1955, H.R. 4259, P.L. 84-18, § 2, 69 Stat. 14: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "April 1, 1955" and inserting in lieu thereof "April 1, 1956"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "March 31, 1955" and inserting in lieu thereof "March 31, 1956". Applicability: Indicated by the terms of the amendment. Mar. 29, 1956, H.R. 9166, P.L. 84-458, § 2, 70 Stat. 66: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "April 1, 1956" and inserting in lieu thereof― "April 1, 1957"; and * Section 11 (relating to income tax on corporations) originally read as follows (68A Stat. 11): "SEC. 11. TAX IMPOSED. “(a) CORPORATIONS IN GENERAL.-A tax is hereby imposed for each taxable year on the taxable income of every corporation. The tax shall consist of a normal tax computed under subsection (b) and a surtax computed under subsection (c). "(b) NORMAL TAX. "(1) TAXABLE YEARS BEGINNING BEFORE APRIL 1, 1955.-In the case of a taxable year beginning before April 1, 1955, the normal tax is equal to 30 percent of the taxable income. "(2) TAXABLE YEARS BEGINNING AFTER MARCH 31, 1955.-In the case of a taxable year beginning after March 31, 1955, the normal tax is equal to 25 percent of the taxable income. "(c) SURTAX. The surtax is equal to 22 percent of the amount by which the taxable income (computed without regard to the deduction, if any, provided in section 242 for partially tax-exempt interest) exceeds $25,000. "(d) 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), "(3) subchapter M (sec. 851 and following, relating to regulated investment companies), or "(4) section 881 (a) (relating to foreign corporations not engaged in business in United States)." SEC. 11-Continued (b) (amended 1956)-Continued Do.. changed) Do.. (dates changed) Do.. (dates changed) (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied) "March 31, 1956" and inserting in lieu thereof "March 31, 1957". Applicability: Indicated by the terms of the amendment. Mar. 29, 1957, H.R. 4090, P.L. 85-12, § 2, 71 Stat. 9. (1) by striking out in the heading and in the text of paragraph (1) and inserting in lieu thereof "July 1, 1958"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)"March 31, 1957" and inserting in lieu thereof— "June 30, 1958". Applicability: Indicated by the terms of the amendment. June 30, 1958, H.R. 12695, P.L. 85-475, § 2, 72 Stat. 259: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)"July 1, 1958" and inserting in lieu thereof― "July 1, 1959"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1958" and inserting in lieu thereof "June 30, 1959". Applicability: Indicated by the terms of the amendment. June 30, 1959, H.R. 7523, P.L. 86–75, § 2, 73 Stat. 157: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "July 1, 1959" and inserting in lieu thereof "July 1, 1960"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1959" SEC. 11-Continued (b) (amended 1959)-Continued Do... Do... Do.. (dates changed) and inserting in lieu thereof "June 30, 1960". Applicability: Indicated by the terms of the amendment. June 30, 1960, H.R. 12381, P.L. 86-564, § 201, 74 Stat. 290: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "July 1, 1960" and inserting in lieu thereof "July 1, 1961"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1960" and inserting in lieu thereof "June 30, 1961". Applicability: Indicated by the terms of the amendment. June 30, 1961, H.R. 7446, P.L. 87-72, § 2, 75 Stat. 193: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "July 1, 1961" and inserting in lieu thereof "July 1, 1962"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1961" and inserting in lieu thereof "June 30, 1962". Applicability: Indicated by the terms of the amendment. June 28, 1962, H.R. 11879, P.L. 87-508, § 2, 76 Stat. 114: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "July 1, 1962" and inserting in lieu thereof "July 1, 1963"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1962" SEC. 11-Continued (b)-Continued June 29, 1963, H.R. 6755, P.L. 88-52, § 2, 77 Stat. 72: (1) by striking out in the heading and in the text of paragraph (1) (relating to taxable years for which the 30 percent rate applied)— "July 1, 1963" and inserting in lieu thereof— "July 1, 1964"; and (2) by striking out in the heading and in the text of paragraph (2) (relating to taxable years for which the 25 percent rate applied)— "June 30, 1963" and inserting in lieu thereof "June 30, 1964". Applicability: Indicated by the terms of the amendment. Sept. 14, 1960, H.R. 10960, P.L. 86-779, § 10(d), 74 Stat. 1009: Taxable years of real estate investment trusts beginning after (Id., § 10(k), 74 Stat. 1009.) Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 121, 78 Stat. 25: Amended Sec. 11 (see n. 8, p. 31 above), as previously amended, to read as follows: "SEC. 11. TAX IMPOSED. "(a) CORPORATIONS IN GENERAL.-A tax is hereby imposed for each taxable year on the taxable income of every corporation. The tax shall consist of a normal tax computed under subsection (b) and a surtax computed under subsection (c). "(b) NORMAL TAX.-The normal tax is equal to the following percentage of the taxable income: "(1) 30 percent, in the case of a taxable year beginning before January 1, 1964, and "(2) 22 percent, in the case of a taxable year beginning after December 31, 1963. "(c) SURTAX. The surtax is equal to the following percentage of the amount by which the taxable income exceeds the surtax exemption for the taxable year: "(1) 22 percent in the case of a taxable year beginning before January 1, 1964. "(2) 28 percent, in the case of a taxable year beginning after December 31, 1963, and before January 1, 1965, and "(3) 26 percent, in the case of a taxable year beginning after December 31, 1964. "(d) SURTAX EXEMPTION.-For purposes of this subtitle, the surtax exemption for any taxable year is $25,000, except that, with respect to a corporation to which section 1561 (relating to surtax exemptions in case of certain controlled corporations) applies for the taxable year, the surtax exemption for the taxable year is the amount determined under such section. SEC. 11 (revised 1964)—Continued "(e) 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), "(3) subchapter M (sec. 851 and following, relating to regulated investment companies and real estate investment trusts), or "(4) section 881 (a) (relating to foreign corporations not engaged in business in United States).' SEC. 12. CROSS REFERENCES RELATING TO TAX ON CORPORATIONS (68A Stat. 11): (8)___ (repealed) Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 234(b)(4), 78 Stat. 115: CH. 1, SUBCH. A, PART III-CHANGES IN RATES DURING A TAXABLE YEAR (68A Stat. 12): NOTE: The table of sections for Part III of Subchapter A of Chapter 1 reads as follows (68A Stat. 12): "Sec. 21. Effect of changes." This table has not been amended. SEC. 21.-EFFECT OF CHANGES (68A Stat. 12): (d) ______ (in full) Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 132, 78 Stat. 30–31: "(d) CHANGES MADE BY REVENUE ACT OF 1964. "(1) INDIVIDUALS.-In applying subsection (a) to the taxable year of an individual beginning in 1963 and ending in 1964 "(A) the rate of tax for the period on and after January 1, 1964, shall be applied to the taxable income determined as if • Paragraph (8) of section 12 read as follows (68A Stat. 11): "(8) For additional tax for corporations filing consolidated returns, see section 1503." 10 Section 21 originally read as follows (68A Stat. 12): "SEC. 21. EFFECT OF CHANGES. "(a) GENERAL RULE.-If any rate of tax imposed by this chapter changes, and if the taxable year includes the effective date of the change (unless that date is the first day of the taxable year), then "(1) tentative taxes shall be computed by applying the rate for the period before the effective date of the change, and the rate for the period on and after such date, to the taxable income for the entire taxable year; and "(2) the tax for such taxable year shall be the sum of that proportion of each tentative tax which the number of days in each period bears to the number of days in the entire taxable year. [Footnote 10 continued on following page] |