Corporations subject to and exempt from franchise tax

# (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.