To amend the Internal Revenue Code of 1986 to encourage a reduction of interest rates on tax-exempt bonds by providing an incentive for qualified retirement plans to acquire tax-exempt bonds.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow a tax credit for a percentage of the aggregate interest received or accrued by a retirement plan on any qualified tax-exempt bond. Defines such bond as one issued after December 31, 1992, and the interest on which is not includible in gross income other than any private activity bond and any refunding bond issued before January 1, 1993. Authorizes the payment of refunds for such tax-exempt interest collected by the Secretary of the Treasury.…