A bill to amend the Internal Revenue Code of 1954 to make it clear that certain motor vehicle operating leases are leases.

Amends the Internal Revenue Code to provide that the fact that a motor vehicle operating agreement contains a terminal rental adjustment clause shall not be taken into account in determining whether such agreement is a lease.

Defines "motor vehicle operating agreement" to mean any agreement with respect to a motor vehicle under which the lessor (1) is personally liable for the repayment of, or (2) has pledged property, other than property subject to the agreement or property directly or indirectly financed by indebtedness secured by property subject to the agreement, as security for, all amounts borrowed to finance the acquisition of property subject to the agreement.

Defines "terminal rental adjustment clause" to mean a provision of an agreement which permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor under the agreement upon sale or other disposition of such property.