A bill to amend the Internal Revenue Code of 1954 with respect to interest on certain governmental obligations the proceeds of which are to be used to provide solid waste disposal facilities.

Amends the Internal Revenue Code to include within the definition of "solid waste disposal facility", for purposes of the tax exemption for industrial development bond interest, any facility which has the function of: (1) recovering material from solid wastes; and (2) producing gas, heat, or energy directly or indirectly from the solid waste disposal process and which is operated by or on behalf of a governmental agency.

Allows tax-exempt industrial development bonds to be used to fund solid waste disposal facilities where steam or electric energy produced at such facilities is sold to and used by the Federal Government.