[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1279 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1279

 To amend the Internal Revenue Code of 1986 to exclude the activity of 
soliciting and receiving qualified sponsorship payments from unrelated 
                            business income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 1997

 Mr. Camp (for himself, Mr. Jefferson, and Mr. Watkins) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude the activity of 
soliciting and receiving qualified sponsorship payments from unrelated 
                            business income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FROM UNRELATED BUSINESS TAXABLE INCOME FOR CERTAIN 
              SPONSORSHIP PAYMENTS.

    (a) In General.--Section 513 (relating to unrelated trade or 
business income) is amended by adding at the end the following new 
subsection:
    ``(i) Treatment of Certain Sponsorship Payments.--
            ``(1) In general.--The term `unrelated trade or business' 
        does not include the activity of soliciting and receiving 
        qualified sponsorship payments.
            ``(2) Qualified sponsorship payments.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified sponsorship 
                payment' means any payment made by any person engaged 
                in a trade or business with respect to which there is 
                no arrangement or expectation that such person will 
                receive any substantial return benefit other than the 
                use or acknowledgement of the name or logo (or product 
                lines) of such person's trade or business in connection 
                with the activities of the organization that receives 
                such payment. Such a use or acknowledgement does not 
                include advertising such person's products or services 
                (including messages containing qualitative or 
                comparative language, price information or other 
                indications of savings or value, an endorsement, or an 
                inducement to purchase, sell, or use such products or 
                services).
                    ``(B) Limitations.--
                            ``(i) Contingent payments.--The term 
                        `qualified sponsorship payment' does not 
                        include any payment if the amount of such 
                        payment is contingent upon the level of 
                        attendance at one or more events, broadcast 
                        ratings, or other factors indicating the degree 
                        of public exposure to one or more events.
                            ``(ii) Acknowledgements or advertising in 
                        periodicals.--The term `qualified sponsorship 
                        payment' does not include any payment which 
                        entitles the payor to an acknowledgement or 
                        advertising in regularly scheduled and printed 
                        material published by or on behalf of the payee 
                        organization that is not related to and 
                        primarily distributed in connection with a 
                        specific event conducted by the payee 
                        organization.
            ``(3) Allocation of portions of single payment.--For 
        purposes of this subsection, to the extent that a portion of a 
        payment would (if made as a separate payment) be a qualified 
        sponsorship payment, such portion of such payment and the other 
        portion of such payment shall be treated as separate 
        payments.''
    (b) Effective Date.--The amendment made by this section shall apply 
to payments solicited or received after December 31, 1996.
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