Exempt qualified student loan bonds from the volume cap and the alternative minimum tax.

Section 146(g) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively, and by inserting after paragraph (1) the following new paragraph:

(2) any qualified student loan bond,

Section 149(f)(6) of such Code is amended by adding at the end the following new subparagraph:

For purposes of subparagraph (A), in the case of any qualified student loan bond, the term ultimate borrower shall not include any student borrower.

Section 146(g) of such Code is amended by striking Paragraphs (4) and (5) in the last sentence and inserting Paragraphs (5) and (6).

Section 57(a)(5)(C) of such Code is amended by redesignating clauses (iv), (v), and (vi) as clauses (v), (vi), and (vii), respectively, and by inserting after clause (iii) the following new clause:

For purposes of clause (i), the term private activity bond shall not include any bond issued after the date of the enactment of this clause if such bond is a qualified student loan bond (as defined in section 144(b)). The preceding sentence shall not apply to any refunding bond unless such preceding sentence applied to the refunded bond (or in the case of a series of refundings, the original bond).

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.