A bill to amend section 103 of the Internal Revenue Code of 1954.

Provides, under the Internal Revenue Code, for the exclusion from gross income of the interest on State and municipal obligations issued to provide facilities for the furnishing of water whether or not to the general public.

Provides such exclusion for facilities which convert gas or oil burning equipment to equipment which burns other energy burning materials.

Increases from $1,000,000 to $10,000,000 the amount of interest on industrial development bonds which may be excluded from gross income.