100 STAT. 2770
PUBLIC LAW 99-514—OCT. 22, 1986
(b) QUALIFIED ORGANIZATIONS.—For purposes of this section, the term "qualified organization" has the same meaning given to such term by subparagraphs (A) and (B) of section 41(e)(6) (as redesig nated by section 231(d)(2)) of the Internal Revenue Code of 1986. (c) TREATMENT OF INVESTMENT IN A TECHNOLOGY TRANSFER SERVICE ORGANIZATION.—
(1) IN GENERAL.—A qualified investment made by a private foundation in an organization described in subparagraph (C) shall be treated as an investment described in section 4944(c) of the Internal Revenue Code of 1986 and shall not result in imposition of taxes under section 4941, 4943, 4944, 4945, or 507(c) of such Code. (2) DEFINITIONS.—For purposes of this subsection— (A) QUALIFIED INVESTMENT.—The term "qualified investment" means a transfer by a private foundation of— (i) all of the patents, copyrights, know-how, and other technology or rights thereto of the private foundation, and (ii) investment assets, net receivables, and cash not exceeding $35,000,000, to such organization in exchange for debt. (B) PRIVATE FOUNDATION.—The term "private foundation" means— ' (i) a nonprofit corporation which was incorporated before 1913 which is described in sections 501(c)(3) and 509(a) of such Code, and which is exempt from taxation under section 501(a) of such Code, and (ii) the principal purposes of which are to support research by and to provide technology transfer services to organizations described in section 170(b)(l)(A) of such Code— (I) which are exempt from taxation under section
501(a) of such Code, or (II) the income of which is excluded from tax' > ation under section 115 of such Code. (C) TECHNOLOGY TRANSFER ORGANIZATION.—The term "technology transfer organization" means a corporation established after the date of the enactment of this Act— (i) which is organized and operated to advance the public welfare through the provision of technology . • -.. i transfer services to research organizations, (ii) no part of the net earnings of which inures to the benefit of, or is distributable to, any private share., "' ' holder, individual, or entity, other than a private foundation or research organization, t (iii) which does not participate in, or intervene in (including the publishing or distributing of statements) ? any political campaign on behalf of any candidate for public office, '. (iv) no substantial part of the activities of which is . !-,• carrying on propaganda, or otherwise attempting, to influence legislation, and '^
(v) upon liquidation or dissolution of which all of its net assets can be distributed only to research organizations. (d) EFFECTIVE DATE.—This section shall take effect on the date of the enactment of this Act.