A bill to amend the Internal Revenue Code of 1954 to provide an election by certain foreign corporations to treat interest income as income connected with U.S. business.

Permits a foreign corporation primarily engaged in a banking, financing, or similar business to elect to treat all interest and all gain or loss from the sale or exchange of notes, bonds, or other evidences of indebtedness, arising in the course of the banking, financing, or similar business of the corporation making the election, which would not be treated as income effectively connected with the conduct of a trade or business within the United States, as income which is effectively connected with the conduct of a trade or business within the United States.

Permits the withholding at source on all such income except to the extent that the requirement of such withholding is waived under regulations prescribed by the Secretary of the Treasury or his delegate upon determination that the collection of the tax imposed on such corporation will not be jeopardized by such waiver.