A bill to amend section 103 of the Internal Revenue Code of 1954 to provide that the interest on mortgage revenue 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 revenue bonds. Defines "mortgage revenue bonds" as bonds which are issued to provide funding for mortgages on owner-occupied residences.

Permits a tax exclusion for interest on bonds which are issued by a State agency: (1) which has been authorized by the State legislature to issue bonds to finance housing for a class of individuals specifically designated by the legislature; (2) the officers of which are appointed on the State level; (3) which is required to report to the State legislature at least annually; and (4) which maintains a full-time staff.

Limits the issuance of industrial development bonds for housing purposes to housing financed by a State agency in conformity with the requirements of this Act.