A bill to amend the Internal Revenue Code of 1954 to provide, for purposes of the residential energy credit and the investment tax credit, that a State or local program shall not be treated as having a principal purpose of providing subsidized energy financing unless subsidized energy financing represents 5 percent or more of the total outstanding loan balance of loans provided under the program.

Amends the Internal Revenue Code to provide, for purposes of the residential energy tax credit and the investment tax credit, that a State or local program shall not be treated as having a principal purpose of providing subsidized energy financing unless such financing represents five percent or more of the total outstanding loan balance of loans provided under the program.

Sets forth similar rules for proceeds of industrial development bonds.