Title VII, SEC. 7603. EXEMPTION FROM INCOME TAX FOR REGIONAL ALLIANCES. (a) In General. Subsection (c) of section 501 (relating to exemption from tax on corporations, certain trusts, etc.) is amended by adding at the end thereof the following new paragraph: ``(26) Any regional alliance described in section 1301 of the Health Security Act. Such an alliance shall be treated as not described in any other paragraph of this subsection.'' (b) Effective Date. The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.