A bill to amend section 103 of the Internal Revenue Code of 1954 to provide that the interest on mortgage subsidy bonds will not be exempt from Federal income tax.

Amends the Internal Revenue Code to deny a tax exclusion of the interest on State and local mortgage subsidy bonds (except those bonds issued to finance housing for veterans). Defines "mortgage subsidy bonds" as bonds which are issued to provide funding for mortgages on owner-occupied residences.

Limits the issuance of industrial development bonds for housing purposes to low-or moderate-income rental housing.