A bill to permit the distribution to charity of profits arising from the advance refunding of State and local obligations before the publication of Treasury News Release WS 1097 prohibiting such distributions and to provide relief to those jurisdictions which have already accounted for such amounts.

Permits the distribution to charities of the interest, profits, or other amounts derived from the advance refunding, before September 24, 1976, of the obligations of a State, territory, possession, or local government without causing the refunding obligations to be treated as arbitrage bonds and without incurring a penalty to the issuer under the Internal Revenue Code, or any regulation, news release, or ruling.

Directs the Secretary of the Treasury to repay the amount of any refund profit paid to the United States directly or by the purchase of United States obligations which bear an interest rate lower than the highest rate of interest borne by public debt securities of the United States then available for purchase.