To amend the Internal Revenue Code of 1986 to provide an exclusion from unrelated business taxable income for certain sponsorship payments.

Amends the Internal Revenue Code to declare that unrelated trade or business does not include the activity of soliciting and receiving qualified sponsorship payments (payments received by tax-exempt organizations from corporations and other sponsors in connection with certain athletic and other public events) for purposes of the tax on unrelated business income of charitable, etc., organizations.

Excludes royalties received by certain tax-exempt olympic organizations for the 1996 Olympics as income from an unrelated trade or business.