A bill to provide that certain indebtedness incurred before 1965 will not be treated as acquisition indebtedness for purposes of applying section 514 of the internal Revenue Code of 1954 to certain sales during 1976.

Provides that, with respect to any sale of real property during 1976, indebtedness incurred before January 1, 1965, by a tax-exempt organization to finance the construction of a building on such property shall not be treated as acquisition indebtedness for purposes of the tax on the unrelated business income of such organization, if the property was acquired by such organization before January 1, 1952, and is contiguous to another parcel of real property which was acquired by such organization before January 1, 1952, and was used by such organization in accordance with the purposes for which such organization received its tax-exemption.