A bill to amend Section 103 of the Internal Revenue Code of 1954 to provide that the interest on certain mortgage revenue bonds will not be exempt from Federal income tax.

Amends the Internal Revenue Code to deny a tax exclusion of the interest on State and local mortgage revenue bonds. Defines "mortgage revenue bonds" as bonds which are issued to provide funding for mortgages on owner-occupied residences.

Permits a tax exclusion for interest earned on bonds which are issued to finance housing for veterans, as general revenue bonds, or for the financing of low- and moderate-income housing, or the rehabilitation of such housing.

Limits the issuance of industrial development bonds for housing purposes to rental or cooperative housing.