Treatment of amounts received by OBF provider

(a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 112 the following new section: 113. Amounts received by outcomes-based financing provider (a) General rule Gross income of an OBF provider does not include so much of amounts received by such provider from an OBF recipient during the taxable year as does not exceed an amount equal to the excess of— (1) the amount of the financing provided to the OBF recipient under the terms of an OBF product, over (2) the aggregate amounts received by the OBF provider under the terms of the product in all preceding taxable years. (b) Terms For purposes of this section, the terms OBF provider, OBF recipient, and OBF product have the respective meanings given such terms by section 140(h) of the Truth in Lending Act.. (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 112 the following new item: Sec. 113. Amounts received by outcomes-based financing provider.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.