A bill to amend the Internal Revenue Code of 1954 to limit the application of the subsidized energy financing limitations on certain tax credit to Federal subsidies, and for other purposes.

Amends the Internal Revenue Code to remove from the subsidized energy financing limitation, for purposes of determining expenditures which qualify for the residential energy credit and the investment tax credit, energy financing received under State or local programs.

Removes industrial development bond proceeds from the formula for reducing the qualified investment in energy property for purposes of the investment tax credit.