A bill to amend the Internal Revenue Code of 1986 to modify the rules regarding the refunding of qualified small issue bonds.

Amends the Internal Revenue Code to permit the refinancing of small issue bonds without considering the bonds to be reissued (for the purpose of being tax-exempt under the provisions of the Tax Reform Act of 1986) if the average maturity date of the issue of which the refunding bond is a part is not later than five years after the maturity date of the bonds being refunded.

Repeals interest rate rules associated with the refunding of small issue bonds.