To amend the Internal Revenue Code of 1986 with respect to discharge of indebtedness income from prepayment of loans under section 306B of the Rural Electrification Act of 1936.

Amends the Internal Revenue Code to revise provisions concerning the discharge of indebtedness from the prepayment of certain loans under the Rural Electrification Act of 1936, as such Act was in effect on January 1, 1993 (currently, as such Act was in effect on January 1, 1987).