REPEAL OF APPLICATION OF UNRELATED BUSINESS INCOME TAX TO ESOPS.

SEC. 1523. REPEAL OF APPLICATION OF UNRELATED BUSINESS INCOME TAX TO ESOPS. (a) In General.—Section 512(e) is amended by adding at the end the following new paragraph:111 STAT. 1071 “(3) Exception for esops.—This subsection shall not apply to employer securities (within the meaning of section 409(1)) held by an employee stock ownership plan described in section 4975(e)(7).”. (b) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 1997.