EXCLUSION FROM UNRELATED BUSINESS TAX OF CERTAIN FEES AND OPTION PREMIUMS.

SEC. 13148. EXCLUSION FROM UNRELATED BUSINESS TAX OF CERTAIN FEES AND OPTION PREMIUMS. (a) Loan Commitment Fees.— Paragraph (1) of section 512(b) (relating to modifications) is amended by inserting “amounts received or accrued as consideration for entering into agreements to make loans,” before “and annuities”. (b) Option Premiums.— The second sentence of section 512(b)(5) is amended— (1) by striking “all gains on” and inserting “all gains or losses recognized, in connection with the organization’s investment activities, from”, (2) by striking “, written by the organization in connection with its investment activities,” and (3) by inserting “or real property and all gains or losses from the forfeiture of good-faith deposits (that are consistent with established business practice) for the purchase, sale, or lease of real property in connection with the organization’s investment activities” before the period. (c) Effective Date.— The amendments made by this section shall apply to amounts received on or after January 1, 1994.