You will be given a definition of a task first, then some input of the task.
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

This Act may be cited as the ''Municipal Bond Market Support Act of
2008''.

SEC. 2. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST
EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS.

(a) Increase in Limitation.--Subparagraphs (C)(i), (D)(i), and
(D)(iii)(II) of section 265(b)(3) of the Internal Revenue Code of 1986
are each amended by striking ''$10,000,000'' and inserting
''$30,000,000''.
(b) Repeal of Aggregation Rules Applicable to Small Issuer
Determination.--Paragraph (3) of section 265(b) of such Code is amended
by striking subparagraphs (E) and (F).
(c) Election To Apply Limitation at Borrower Level.--Paragraph (3)
of section 265(b) of such Code, as amended by subsection (b), is
amended by adding at the end the following new subparagraph:
''(E) Election to apply limitation on amount of
obligations at borrower level.--
''(i) In general.--An issuer, the proceeds
of the obligations of which are to be used to
make or finance eligible loans, may elect to
apply subparagraphs (C) and (D) by treating
each borrower as the issuer of a separate
issue.
''(ii) Eligible loan.--For purposes of this
subparagraph--
''(I) In general.--The term
'eligible loan' means one or more loans
to a qualified borrower the proceeds of
which are used by the borrower and the
outstanding balance of which in the
aggregate does not exceed $30,000,000.
''(II) Qualified borrower.--The
term 'qualified borrower' means a
borrower which is an organization
described in section 501(c)(3) and
exempt from taxation under section
501(a) or a State or political
subdivision thereof.
''(iii) Manner of election.--The election
described in clause (i) may be made by an
issuer for any calendar year at any time prior
to its first issuance during such year of
obligations the proceeds of which will be used
to make or finance one or more eligible
loans.''.
(d) Inflation Adjustment.--Paragraph (3) of section 265(b) of such
Code, as amended by subsections (b) and (c), is amended by adding at
the end the following new subparagraph:
''(F) Inflation adjustment.--In the case of any
calendar year after 2009, the $30,000,000 amounts
contained in subparagraphs (C)(i), (D)(i),
(D)(iii)(II), and (E)(ii)(I) shall each be increased by
an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year, determined by substituting
'calendar year 2008' 'for calendar year 1992'
in subparagraph (B) thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of
$100,000.''.
(e) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2008.

SEC. 3. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST
EXPENSE OF FINANCIAL INSTITUTIONS AND BROKERS.

(a) Financial Institutions.--Subsection (b) of section 265 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
''(7) De minimis exception.--Paragraph (1) shall not apply
to any financial institution if the portion of the taxpayer's
holdings of tax-exempt securities is less than 2 percent of the
taxpayer's assets.''.
(b) Brokers.--Subsection (a) of section 265 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
''(7) De minimis exception.--Paragraph (2) shall not apply
to any broker (as defined in section 6045(c)(1)) if the portion
of the taxpayer's holdings of tax-exempt securities is less
than 2 percent of the taxpayer's assets.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
Output:
Municipal Bond Market Support Act of 2008 - Amends Internal Revenue Code provisions relating to the small issuer exemption from interest expense allocation rules for financial institutions to: (1) increase from $10 to $30 million the annual limit on small issuers of tax-exempt municipal bonds; (2) allow an inflation adjustment to such increased limit amount after 2009; (3) repeal aggregation rules relating to the determination of small issuer eligibility; (4) allow small issuers an election to treat borrowers separately for purposes of issuance limitations; and (5) allow financial institutions and brokers to hold up to 2% of their assets in tax-exempt securities without affecting their interest expense tax deduction.