Charitable, etc., organizations taxable at corporation rates
Imposition of tax
There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. In making such computation for purposes of this section, the term “taxable income” as used in section 11 shall be read as “unrelated business taxable income”.
Organizations subject to tax
Organizations described in sections 401(a) and 501(c)
The tax imposed by paragraph (1) shall apply in the case of any organization (other than a trust described in subsection (b) or an organization described in section 501(c)(1)) which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a).
State colleges and universities
The tax imposed by paragraph (1) shall apply in the case of any college or university which is an agency or instrumentality of any government or any political subdivision thereof, or which is owned or operated by a government or any political subdivision thereof, or by any agency or instrumentality of one or more governments or political subdivisions. Such tax shall also apply in the case of any corporation wholly owned by one or more such colleges or universities.
Tax on charitable, etc., trusts
Imposition of tax
There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in section 1(e). In making such computation for purposes of this section, the term “taxable income” as used in section 1 shall be read as “unrelated business taxable income” as defined in section 512.
Charitable, etc., trusts subject to tax
The tax imposed by paragraph (1) shall apply in the case of any trust which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a) and which, if it were not for such exemption, would be subject to subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents).
Special rule for section 501(c)(2) corporations
Aug. 16, 1954, ch. 73668A Stat. 169Pub. L. 86–667, § 374 Stat. 535Pub. L. 89–352, § 280 Stat. 4Pub. L. 91–172, title I, § 121(a)(1)83 Stat. 536Pub. L. 95–30, title I, § 101(d)(6)91 Stat. 133Pub. L. 95–600, title III, § 301(b)(5)92 Stat. 2821Pub. L. 97–248, title II, § 201(d)(5)96 Stat. 419Pub. L. 97–448, title III, § 306(a)(1)(A)(i)96 Stat. 2400Pub. L. 100–647, title I, § 1007(g)(6)102 Stat. 3435(, ; , , ; , , ; –(3), title III, § 301(b)(8), title VIII, § 803(d)(2), , , 585, 684; , , ; , title IV, § 421(e)(3), , , 2876; , formerly § 201(c)(5), , , renumbered § 201(d)(5), , , ; , , .)
Editorial Notes
Amendments
Pub. L. 100–647Tax Preferences1988—Subsec. (d). struck out subsec. (d) which read as follows: “.—
Organizations taxable at corporate rates“(1) .—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (a), the tax imposed by section 56 shall apply to such organizations with respect to items of tax preference which enter into the computation of unrelated business taxable income in the same manner as section 56 applies to corporations.
Organizations taxable as trusts“(2) .—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (b), the taxes imposed by section 55 shall apply to such organization with respect to items of tax preference which enter into the computation of unrelated business taxable income.”
Pub. L. 97–2481982—Subsec. (d)(2). substituted “section 55” for “section 55 and section 56 (as the case may be)”.
Pub. L. 95–600, § 301(b)(5)(A)1978—Subsec. (a)(1). , substituted “a tax” for “a normal tax and a surtax”.
Pub. L. 95–600, § 301(b)(5)(B)Subsec. (a)(2). , substituted “tax” for “taxes” wherever appearing.
Pub. L. 95–600, § 421(e)(3)section 56 of this titleSubsec. (d). , substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income.
Pub. L. 95–301977—Subsec. (b)(1). substituted “section 1(e)” for “section 1(d)”.
Pub. L. 91–172, § 121(a)(1)section 501(c) of this titlesection 501(c)(1) of this titlesection 501(a) of this title1969—Subsec. (a)(2)(A). , removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of , and, in text, struck out exemptions to churches, conventions, or associations of churches, from the imposition of tax on their unrelated business income, made corporations organized under (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and .
Pub. L. 91–172, § 803(d)(2)Subsec. (b)(1). , substituted section 1(d) for section 1 in reference to section under which the computation of the tax dealing with the imposition of tax on the unrelated business taxable income of trusts, is computed.
Pub. L. 91–172, § 121(a)(2)Subsec. (b)(2). , pluralized “trust” in heading and in text made the imposition of tax on the unrelated business income of exempt trusts subject to provisions of part II, and, for purposes of determining trusts exempt from taxation, substituted reference to section 501(a) for reference to “section 501(c)(3) or (17) or section 401(a)”.
Pub. L. 91–172, § 121(a)(3)Subsec. (c). , added subsec. (c). Former subsec. (c), covering the effective date, was struck out.
Pub. L. 91–172, § 301(b)(8)Subsec. (d). , added subsec. (d).
Pub. L. 89–3521966—Subsec. (a)(2)(A). inserted “(14)(B) or (C),” after “(6),” in heading and in text.
Pub. L. 86–667, § 3(a)1960—Subsec. (a)(2). , included organizations described in section 501(c)(17) within subpar. (A).
Pub. L. 86–667, § 3(b)Subsec. (b). , inserted a reference to section 501(c)(17).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
Effective Date of 1982 Amendment
Pub. L. 97–248section 201(e)(1) of Pub. L. 97–248section 5 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1978 Amendment
Pub. L. 95–600section 301(c) of Pub. L. 95–600section 11 of this titleAmendment by section 301(b)(5)(A), (B) of applicable to taxable years beginning after , see , set out as a note under .
section 421(e)(3) of Pub. L. 95–600section 421(g) of Pub. L. 95–600section 5 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1977 Amendment
Pub. L. 95–30section 106(a) of Pub. L. 95–30section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1969 Amendment
Pub. L. 91–172, title I, § 121(g)83 Stat. 549Pub. L. 99–514, § 2100 Stat. 2095
section 301(b)(8) of Pub. L. 91–172section 301(c) of Pub. L. 91–172section 5 of this titleAmendment by applicable to taxable years ending after , see , set out as a note under .
section 803(d)(2) of Pub. L. 91–172section 803(f) of Pub. L. 91–172section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1966 Amendment
Effective Date of 1960 Amendment
Pub. L. 86–667section 6 of Pub. L. 86–667section 501 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .