A bill to amend the Internal Revenue Code of 1954 to provide that indebtedness arising out of taxes or special assessments imposed by State or local governments will not be treated as acquisition indebtedness for purposes of the tax on unrelated business income.

Defines the term "acquisition indebtedness", under the Internal Revenue Code, to exclude any indebtedness to the extent that it arises out of a tax or special assessment imposed by a State or any political subdivision thereof, for purposes of the tax on unrelated business income.