A bill to amend the Internal Revenue Code of 1986 to provide tax relief to utilities installing acid rain reduction equipment.

Amends the Internal Revenue Code to allow a tax credit for a three-year credit period for a percentage of the investment in acid rain control property installed to comply with sulfur dioxide emission limitations under the Clean Air Act.

Allows the use of tax-exempt facility bonds to finance acid rain control property.

Allows a business credit for a percentage of the expenditures paid or incurred for coal cleaning minerals used to remove or reduce the sulfur content of coal.

Excludes from gross income the value of clean air allowances allocated to the taxpayer under the Clean Air Act.

Allows a 60-month amortization of acid rain control property.