A bill to amend the Internal Revenue Code of 1954 to provide a special rule for industrial development bonds issued for reconstruction of certain disaster area losses.

Provides, under the Internal Revenue Code, that the prohibition against the tax-exempt status on interest on industrial development bonds shall not apply to any obligation issued as part of an issue the aggregate authorized face amount of which is $15,000,000 or less and substantially all the proceeds of which are to be used for the reconstruction of property which was damaged as a result of Hurricane Agnes and occurring in an area declared by the President of the United States on June 23, 1972, to warrant assistance by the Federal Government under the Disaster Relief Act of 1970. (Amends 26 U.S.C. 103(c))