A bill to amend the Internal Revenue Code of 1954 to exempt buses used predominantly in public passenger transportation service from the manufacturer's excise tax.

Exempts, under the Internal Revenue Code, automobile bus chassis or bodies which are to be used predominantly by the purchaser in public passenger transportation service from the manufacturer's excise tax (previously exempted only those bus bodies to be used predominantly in mass transportation service in urban areas). Sets forth the effective date of this Act, with special provision for payments made under leases, installment contracts, conditional sales, and chattel mortgage arrangements. (Amends 26 U.S.C. 4063 (a)(6))