§ 511. Imposition of tax on unrelated business income of charitable, etc., organizations

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 169 · 68A Stat. 169

   Enacted · 26 U.S.C. § 511

   Aug. 16, 1954, ch. 736, 68A Stat. 169

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 169

2. 1960

   Pub. L. 86–667 § 3(a) · 74 Stat. 534

   Changed · 26 U.S.C. § 511(a)(2)

   Pub. L. 86–667, § 3(a), included organizations described in section 501(c)(17) within subpar. (A)

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 86–667, § 3(a), included organizations described in section 501(c)(17) within subpar. (A).

   Enacted provision · exact public law section
   (a) Subsection (a)(2) of section 511 of the Internal Revenue 26 USC 511. Code of 1954 (relating to imposition of tax on unrelated business income of charitable, etc., organizations) is amended— (1) by striking out “and (6)” in the heading of subparagraph (A) and inserting in lieu thereof “(6), and (17)”, and (2) by striking out “or (6)” in the first sentence of subparagraph (A) and inserting in lieu thereof “(6), or (17)”.

3. 1960

   Pub. L. 86–667 § 3(b) · 74 Stat. 534

   Inserted · 26 U.S.C. § 511(b)

   Pub. L. 86–667, § 3(b), inserted a reference to section 501(c)(17)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 86–667, § 3(b), inserted a reference to section 501(c)(17).

   Enacted provision · exact public law section
   (b) Subsection (b) of such section 511 is amended by striking out “section 501(c)(3)” in paragraph (2) and inserting in lieu thereof “section 501(c) (3) or (17)”.

4. 1966

   Pub. L. 89–352 § 2 · 80 Stat. 4

   Inserted · 26 U.S.C. § 511(a)(2)(A)

   Pub. L. 89–352 inserted “(14)(B) or (C),” after “(6),” in heading and in text

   Source evidence

   Code amendment note
   Subsec. (a)(2)(A). Pub. L. 89–352 inserted “(14)(B) or (C),” after “(6),” in heading and in text.

   Enacted provision · exact public law section
   Sec. 2. Section 511(a)(2)(A) of such Code (relating to organizations subject to tax) is amended by inserting “(14)(B) or (C),” after “(6),” in the heading and in the text.

5. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 121(a)(1) · 83 Stat. 487

   Struck · 26 U.S.C. § 511(a)(2)(A)

   Pub. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, 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 section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title

   Source evidence

   Code amendment note
   Subsec. (a)(2)(A). Pub. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, 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 section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title.

   Enacted provision · exact public law section
   (1) Corporate rates.— Section 511(a)(2)(A) (relating to certain organizations subject to tax on unrelated business income at corporate rates) is amended to read as follows: “(A) Organizations described in sections 401(a) and 501(c).— The taxes 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).”

6. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 803(d)(2) · 83 Stat. 487

   Substituted · 26 U.S.C. § 511(b)(1)

   Pub. L. 91–172, § 803(d)(2), 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

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 91–172, § 803(d)(2), 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.

   Enacted provision · exact public law section
   (2) Section 511(b)(1) (relating to imposition of tax on unrelated business income of charitable, etc., organizations) is amended by striking out “section 1”, in the first sentence of such section, and inserting in lieu thereof “section 1(d)”.

7. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 121(a)(2) · 83 Stat. 487

   Substituted · 26 U.S.C. § 511(b)(2)

   Pub. L. 91–172, § 121(a)(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)”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 91–172, § 121(a)(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)”.

   Enacted provision · exact public law section
   (2) Individual rates.— Section 511(b)(2) (relating to charitable, etc., trusts subject to tax on unrelated business income) is amended to read as follows: “(2) 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).”

8. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 121(a)(3) · 83 Stat. 487

   Struck · 26 U.S.C. § 511(c)

   Pub. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out.

   Enacted provision · exact public law section
   (3) Section 501(c)(2) corporations.— Section 511 (relating to tax on unrelated business income) is amended by striking out subsection (c) and inserting in lieu thereof the following new subsection: “(c) Special Rule for Section 501(c)(2) Corporations.— If a corporation described in section 501(c)(2)— “(1) pays any amount of its net income for a taxable year to an organization exempt from taxation under section 501(a) (or which would pay such an amount but for the fact that the expenses of collecting its income exceed its income), and “(2) such corporation and such organization file a consolidated return for the taxable year, such corporation shall be treated, for purposes of the tax imposed by subsection (a), as being organized and operated for the same purposes as such organization, in addition to the purposes described in section 501(c)(2).” 68A Stat. 163. 26 USC 501.

9. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 301(b)(8) · 83 Stat. 487

   Added · 26 U.S.C. § 511(d)

   Pub. L. 91–172, § 301(b)(8), added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 91–172, § 301(b)(8), added subsec. (d).

   Enacted provision · exact public law section
   (8) Section 511 (relating to tax on unrelated business income Ante, p. 536. of charitable, etc., organizations) is amended by adding after subsection (c) (as added by section 121(a)(3) of this Act) the following new subsection: “(d) Tax Preferences.— The tax imposed by section 56 shall apply to an organization subject to tax under this section with respect to Items of tax preference which enter into the computation of unrelated business taxable income.”

10. 1977

    Tax Reduction and Simplification Act of 1977

    Pub. L. 95–30 title I § 101(d)(6) · 91 Stat. 126

    Substituted · 26 U.S.C. § 511(b)(1)

    Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)”.

    Enacted provision · exact public law section
    (6) Paragraph (1) of section 511(b) (relating to tax on 26 USC 511. unrelated business income of charitable, etc., trusts) is amended by striking out “section 1(d)” and inserting in lieu thereof “section”

11. 1978

    Pub. L. 95–600 § 301(b)(5)(A) · 92 Stat. 2763

    Substituted · 26 U.S.C. § 511(a)(1)

    Pub. L. 95–600, § 301(b)(5)(A), substituted “a tax” for “a normal tax and a surtax”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 95–600, § 301(b)(5)(A), substituted “a tax” for “a normal tax and a surtax”.

    Enacted provision · exact public law section
    (A) Imposition of tax.— Paragraph (1) of section 511(a) 26 USC 511. (relating to charitable, etc., organizations taxable at corporation rates) is amended by striking out “a normal tax and a surtax” and inserting in lieu thereof “a tax”.

12. 1978

    Pub. L. 95–600 § 301(b)(5)(B) · 92 Stat. 2763

    Substituted · 26 U.S.C. § 511(a)(2)

    Pub. L. 95–600, § 301(b)(5)(B), substituted “tax” for “taxes” wherever appearing

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 95–600, § 301(b)(5)(B), substituted “tax” for “taxes” wherever appearing.

    Enacted provision · exact public law section
    (B) Organizations subject to tax.— Paragraph (2) of section 511(a) is amended by striking out “taxes” each place it appears and inserting in lieu thereof “tax”.

13. 1978

    Pub. L. 95–600 § 421(e)(3) · 92 Stat. 2763

    Substituted · 26 U.S.C. § 511(d)

    Pub. L. 95–600, § 421(e)(3), substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by section 56 of this title to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 95–600, § 421(e)(3), substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by section 56 of this title to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income.

    Enacted provision · exact public law section
    (3) 26 USC 511. Subsection (d) of section 511 (relating to tax preferences) is amended to read as follows: “(d) Tax Preferences.— “(1) Organizations taxable at corporate rates.— If an organization is subject to tax on unrelated business taxable income 26 USC 56. 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. “(2) Organizations taxable as trusts.— If an organization is subject to tax on unrelated business taxable income pursuant to subsection (b), the taxes imposed by section 55 and section 56 (as the case may be) shall apply to such organization with respect to items of tax preference which enter into the computation of unrelated business taxable income.”

14. 1982

    Pub. L. 97–248 title II § 201(d)(5) · 96 Stat. 324

    Substituted · 26 U.S.C. § 511(d)(2)

    Pub. L. 97–248 substituted “section 55” for “section 55 and section 56 (as the case may be)”

    Source evidence

    Code amendment note
    Subsec. (d)(2). Pub. L. 97–248 substituted “section 55” for “section 55 and section 56 (as the case may be)”.

    Enacted provision · exact public law section
    “(d) Cross Reference.— “For election of 10-year amortization of expenditures allowable as a deduction under subsection (a), see section 58(i).” (D) Section 617 (relating to deduction of certain mining exploration 26 USC 617. expenditures) is amended by adding at the end thereof the following new subsection:

15. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 title I § 1007(g)(6) · 102 Stat. 3342

    Struck · 26 U.S.C. § 511(d)

    Pub. L. 100–647 struck out subsec. (d) which read as follows: “Tax Preferences.—

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 100–647 struck out subsec. (d) which read as follows: “Tax Preferences.—

    “(1) Organizations taxable at corporate rates.—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. “(2) Organizations taxable as trusts.—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.”

    Enacted provision · exact public law section
    (6) Section 511 of the 1986 Code is amended by striking out subsection (d).

    Effective date note
    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.

14 of 15 references resolved to an enrolled provision · 1 partial