CERTAIN HOSPITAL SERVICES.

SEC. 1311. CERTAIN HOSPITAL SERVICES. (a) In General.— Section 513 (relating to unrelated trade or business) is amended by adding at the end thereof the following new subsection: “(e) Certain Hospital Services.— In the case of a hospital described in section 170(b)(1)(A)(iii), the term ‘unrelated trade or business’ does not include the furnishing of one or more of the services described in section 501(e)(1)(A) to one or more hospitals described in section 170(b)(1)(A)(iii) if— 90 STAT. 1730 “(1) such services are furnished solely to such hospitals which have facilities to serve not more than 100 inpatients; “(2) such services, if performed on its own behalf by the recipient hospital, would constitute activities in exercising or performing the purpose or function constituting the basis for its exemption; and “(3) such services are provided at a fee or cost which does not exceed the actual cost of providing such services, such cost including straight line depreciation and a reasonable amount for return on capital goods used to provide such services.” (b) Effective Date.— The amendment made by this section shall apply to all taxable years to which the Internal Revenue Code of 1954 applies.