A bill to amend the Internal Revenue Code of 1954 to increase the small issue exemption from industrial development bond treatment to $20,000,000 for industrial-type property used in economically distressed areas and to reduce such exemption for other property not used in such an area, and for other purposes.

Amends the Internal Revenue Code to increase to $20,000,000 the amount of industrial development bonds for economically distressed areas which qualify as tax-exempt small issues. Provides for a $10,000,000 exemption for non-industrial property used in such an area and no increased exemption for property used outside an economically distressed area. Specifies requirements relating to poverty, unemployment, and per capita income growth for designation as a qualified distressed area.

Terminates the existing exemption of small issues used to finance restaurant or retail store franchises or retail stores or restaurants which operate more than ten outlets under the same trade name.