A bill to amend the Internal Revenue Code of 1954 to exempt from treatment as an industrial development bond certain bond issues the proceeds of which are used for facilities for the furnishing of water and hydroelectric energy.

Amends the Internal Revenue Code to stipulate that for specified bond issues, the proceeds of which are used for providing facilities with hydroelectric energy, the provisions concerning taxation of interest on industrial revenue bonds shall be inapplicable and any interest received from such governmental obligations shall be excluded from gross income.