A bill to amend the Internal Revenue Code to provide that certain research and development 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.