A bill to amend the Internal Revenue Code of 1954 to deny certain tax incentives for property used by governments and other tax-exempt entities.

Amends the Internal Revenue Code to deny property used by governments, tax-exempt foreign individuals, and other tax-exempt entities accelerated depreciation deductions. Requires that any deductions for depreciation of such property be calculated according to the straight line method. Exempts from such limitation short-term or casual leases of property and property used in an unrelated trade or business.

Denies the investment tax credit for property used by foreign governments and other foreign persons.

Denies the investment tax credit for rehabilitation expenditures for property which is financed by the proceeds of industrial development bonds.

States that the provisions of this Act shall be effective for property placed in service after May 23, 1983, with an exception for binding contracts and mass commuting vehicles financed by tax-exempt securities.