A bill to amend the Internal Revenue Code of 1954 with respect to the tax treatment of cooperative electric and telephone companies.

Amends the Internal Revenue Code to provide that income received by a mutual or cooperative electric company from nonmember electric companies for providing electric energy to such nonmember companies shall not be taken into account in determining the tax-exempt status of the mutual or cooperative electric company. Provides that income received by a mutual or cooperative telephone or electric company for services to customers of rural telephone or electric companies, and income received from the rental or sale of communications or power facilities, shall not be subject to the tax on unrelated business income.