A bill to amend the Internal Revenue Code of 1954 to provide that the interest on certain obligations related to exempt activities, industrial parks, and small issues shall be exempt from Federal income tax only if at least 10 percent of the proceeds of the issue are to be expended with underutilized small businesses, and for other purposes.

Amends the Internal Revenue Code to provide that the interest on specified types of industrial development bonds shall be tax-exempt only if at least ten percent of the proceeds of such bonds are used directly or indirectly to purchase property or services from one or more underutilized small businesses. Authorizes the Secretary of the Treasury to reduce the ten percent requirement in certain circumstances.

Requires that ten percent of the amount of tax-exempt governmental obligations issued in a State must be issued through underutilized brokerage houses.