A bill to amend the Internal Revenue Code of 1986 to provide that the denial of the deduction for interest on indebtedness with respect to certain life insurance policies shall not apply to indebtedness used to fund post-retirement medical benefits.

Amends the Internal Revenue Code to eliminate the limitation on the deductibility of policyholder loan interest incurred with respect to one or more life insurance policies when loan proceeds are used to fund post-retirement medical benefits under a nondiscriminatory employee benefit plan. (Under current law, an employer may not deduct such interest when the aggregate amount of loans per employee exceeds $50,000.)