A bill to amend the Internal Revenue Code of 1954 to make permanent the percentage rate for computing the addition to reserves for bad debts for banks; to modify the experience method to allow a showing based on facts and circumstances and to repeal the treatment of percentage method additions as corporate tax preferences.

Amends the Internal Revenue Code to make permanent the present one percent rate for deductible additions to a bank's bad debt loss reserve account. Modifies the experience method of determining amounts necessary to sustain such a reserve account to allow a taxpayer to use an alternate method of determining reasonable additions to reserve accounts. Repeals the treatment of percentage method additions to loan loss reserves as corporate tax preference items.