A bill to amend the Internal Revenue Code of 1954 to clarify the tax status of certain industrial development bonds issued to provide facilities for the furnishing of water used to cool thermal generating plants or to generate hydroelectric energy.

Amends the Internal Revenue Code to stipulate that for specified bond issues, the proceeds of which are used for providing facilities with hydroelectric energy, the provisions concerning taxation of interest on industrial revenue bonds shall be inapplicable and any interest received from such governmental obligations shall be excluded from gross income.