A bill to amend the Internal Revenue Code of 1954 to make certain changes in the tax treatment of private foundations.

Amends the Internal Revenue Code to allow a private foundation established prior to 1939 whose holdings were mostly acquired by gift or bequest prior to 1965, and which is primarily engaged in manufacturing in a specified locality to maintain the current level of its business holdings on January 1, 1983 without incurring a penalty tax on excess business holdings.