A bill to amend the Internal Revenue Code of 1954 with respect to the income tax treatment of small business investment companies and shareholders in such companies.

Extends the bad debt provisions of the Internal Revenue Code of 1954 to small business investment companies, and exempts such companies from the definition of personal holding companies and regulated investment companies under the same code. (Adds 26 U.S.C. 166(g) (851(f); Amends 26 U.S.C. 542(c)(8))

Establishes effective dates for such provisions.