Capital Investment Act of 1989

Capital Investment Act of 1989 - Amends the Internal Revenue Code to reduce from 34 percent to 20 percent the alternative tax rate on capital gains realized by a corporation. Excludes collectibles from capital gains calculations.

Revises the method of calculating the deduction for capital gains of noncorporate taxpayers, allowing a deduction equal to: (1) 100 percent for assets held five years or longer; (2) 60 percent for assets held for between three and five years; and (3) 40 percent for assets held for between one and three years.