# 8 Del. C. § 501: § Â 501. Corporations subject to and exempt from franchise tax > Delaware · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S501 ## Section - **Citation:** 8 Del. C. § 501 - **Heading:** § Â 501. Corporations subject to and exempt from franchise tax - **Jurisdiction:** Delaware - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Delaware Code / Title 8 / Chapter 5 / Section 501 ## Text (a) Every telegraph, telephone or cable company, every electric company organized for the production and/or distribution of light, heat or power, every company organized for the purpose of producing and/or distributing steam, heat or power, every company organized for the purpose of the production and/or distribution and/or sale of gas, every parlor, palace or sleeping car company, every express company, every pipeline company, every life insurance company, every other insurance company of whatever kind (other than a captive insurance company licensed under Chapter 69 of Title 18), and every corporation now existing or hereafter to be incorporated under the laws of this State, shall pay an annual tax, for the use of the State, by way of license for the corporate franchise as prescribed in this chapter. No such tax shall be paid by any exempt corporation, any banking corporation, savings bank, building and loan association or any captive insurance company licensed under Chapter 69 of Title 18, or any corporation for drainage and reclamation of lowlands. (b) As used in this chapter, the term “exempt corporation” shall be defined as any corporation organized under Chapter 1 of this title that: (1) Is exempt from taxation under § 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)) or any similar provisions of the Internal Revenue Code, or any successor provisions; (2) Qualifies as a civic organization under § 8110(a)(1) of Title 9 or § 6840 of Title 16; (3) Qualifies as a charitable/fraternal organization under § 2593(1) of Title 6; (4) Is listed in § 8106(a) of Title 9; (5) Is organized primarily or exclusively for religious or charitable purposes, or is a religious corporation or purely charitable or educational association, or is a company, association or society, which, by its certificate of incorporation, has for its object the assistance of sick, needy or disabled members, or the defraying of funeral expenses of deceased members, or to provide for the wants of the widows or widowers and families after death of its members; or (6) a. Is organized not for profit; and b. No part of its net earnings inures to the benefit of any member or individual. ## Nearby sections - [8 Del. C. § 501 § Â 501. Corporations subject to and exempt from franchise tax.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S501.md) - [8 Del. C. § 502 § Â 502. Annual franchise tax report; contents; failure to file and pay tax; duties of Secretary of State.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S502.md) - [8 Del. C. § 503 § Â 503. Rates and computation of franchise tax.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S503.md) - [8 Del. C. § 504 § Â 504. Collection and disposition of tax; tentative return and tax; penalty interest; investigation of annual franchise tax report; notice of additional tax due.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S504.md) - [8 Del. C. § 505 § Â 505. Review and refund; jurisdiction and power of the Secretary of State; appeal.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S505.md) - [8 Del. C. § 506 § Â 506. Fund for payment of refunds.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S506.md) - [8 Del. C. § 507 § Â 507. Collection of tax; preferred debt.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S507.md) - [8 Del. C. § 508 § Â 508. Injunction against exercise of franchise or transacting business.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S508.md) - [8 Del. C. § 509 § Â 509. Further remedy in Court of Chancery; appointment of receiver or trustee; sale of property.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S509.md) - [8 Del. C. § 510 § Â 510. Failure to pay tax or file a complete annual report for 1 year; charter void; extension of time.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S510.md) - [8 Del. C. § 511 § Â 511. Repeal of charters of delinquent corporations; report to Governor and proclamation.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S511.md) - [8 Del. C. § 512 § Â 512. Filing and publication of proclamation.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S512.md) - [8 Del. C. § 513 § Â 513. Acting under proclaimed charter; penalty.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S513.md) - [8 Del. C. § 514 § Â 514. Mistakes in proclamation; correction.](https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S514.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DE_T8_C5_S501. Check the current official text before relying on it. Not legal advice.