An act to amend the Internal Revenue Code of 1954 with respect to net operating loss carryovers of taxpayers who cease to be real estate investment trusts, to increase interest rates on certain United States retirement bonds, and for other purposes.

(Measure passed Senate, amended)

Amends the Internal Revenue Code to allow a trust which was formerly a real estate investment trust an additional year to carry forward its net operating losses (up to a maximum of eight years) for each year that such trust was denied a net operating loss carryback due to its status as a real estate investment trust prior to the Tax Reform Act of 1976.

Authorizes the Secretary of the Treasury, with the approval of the President, to increase the interest yield on outstanding retirement bonds to make such yield consistent with the interest rates for new issues of such bonds.

Makes technical amendments to several provisions of the Internal Revenue Code pertaining to General Stock Ownership Corporations.

Amends the Internal Revenue Code to permit employees of charitable organizations (other than private foundations) working in underdeveloped countries to elect, in lieu of the income tax deduction for excess foreign living costs, an income tax exclusion equal to $20,000.

Sets forth arbitrage requirements for mortgage revenue bonds.