Page:United States Statutes at Large Volume 78.djvu/67

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

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PART II—CORPORATIONS SEC. 121. REDUCTION OF TAX ON CORPORATIONS. Section 11 (relating to tax on corporations) is amended to read as follows: "SEC. 11. TAX IMPOSED. " (a) CORPORATIONS I N GENKRAL.—A tax is hereby imposed

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each taxable year on the taxable income of eveiy 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 Post,p.ii6. 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. "(e) ExcEPiTONS.—Subsection (a) shall not apply to a corporation subject to a tax imposed by— "(1) section 594 (relating to mutual savings banks con- 26 USC 594. ducting life insurance business), 26 "(2) subchapter L (sec. 801 and following, relating to aeq. u s e 801 et insurance conipanies), "(3) subchapter M (sec. 851 and following, relating to ^^26 USC 85iet regulated investment companies and real estate investment tnists^, or "(4) section 881(a) (relating to foreign corporations not 26 USC 88i. engaged in business in United States)." SEC. 122. CURRENT TAX PAYMENTS BY CORPORATIONS. (a) INSTALLMENT PAYMENTS OF ESTIMATED INCOME TAX BY COR-

i*ORATiONS.—Section 6154 (relating to installment payments of estimated income tax by corporations) is amended to read as follows: "SEC. 6154. INSTALLMENT PAYMENTS OF ESTIMATED INCOME TAX BY CORPORATIONS.

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" (a) AMOUNT AND T I M E FOR PAYMENT OF EACJI INSTALLMENT.—

The amount of estimated tax (as defined in section 6016(b)) with respect to which a declaration is required under section 6016 shall be paid as follows: " (1) PAYMENT I N 4 INSTALLMENTS.—If the declaration is filed on or l>efore the 15th day of the 4th month of the taxable year, the estimated tax shall be paid in 4 installments. The aniount

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