A bill to amend the Internal Revenue Code of 1954 to provide that certain restrictions applicable to industrial development bonds shall not apply to bonds the proceeds of which are to be used in any trade or business carried on by any person certified as being a financially distressed person.

Amends the Internal Revenue Code to provide that interest earned on industrial development bonds the proceeds of which are used in a business carried on by a financially distressed person shall be excludable from gross income. Defines a "financially distressed person" as a business proprietor who is in financial difficulty and whose financial demise would have a seriously adverse effect on the economy of any State or the United States.