A bill to amend the Internal Revenue Code of 1954 to provide that certain research or experimental expenditures will not be taken into account for purposes of the small issue exemption from the industrial development bond rules.

Amends the Internal Revenue Code to exclude research and experimental expenditures connected with a taxpayer's trade or business from the computation of expenditures which determines whether a bond issue qualifies for the alternative $10,000,000 small issue exemption from the industrial development bond interest inclusion rules.