To amend the Internal Revenue Code of 1986 to exempt small issues from the restrictions on the deduction by financial institutions for interest, to disregard certain amounts of capital expenditures in applying $10,000,000 limit on such issues, and for other purposes.

Amends the Internal Revenue Code to exempt any qualified small issue bond from the restrictions on the deduction by financial institutions for interest. Disregards $10 million of capital expenditures in applying the $10 million limitation on the face amount of qualified small issue bonds. Excludes any qualified small issue bond from the limitation on use for land acquisition. Repeals the percentage limitation on directly related and ancillary facilities which may be financed by qualified small issue bonds. Repeals the de minimis limitation applicable to financing of office space by qualified small issue bonds and specifies that an office shall not be treated as manufacturing property unless: (1) the office is located on the premises of a manufacturing facility; and (2) not more than a de minimis amount of the functions performed at such office is not directly related to the day-to-day operations at such facility.