To amend the Internal Revenue Code of 1986 and the Federal Election Campaign Act of 1971 to make Federal elections more competitive, open, and honest by strengthening political parties, and for other purposes.

Amends the Federal Election Campaign Act of 1971 to: (1) exclude from the annual limitation on total individual contributions those contributions to national, State, and local committees of political parties that, in the aggregate, do not exceed $25,000 in a calendar year; (2) remove the limitations on contributions by the national or State committee of a political party or by a House or Senate campaign committee of a political party to candidates in general elections for Federal office; (3) allow national and State committees of a political party to match the total amount of independent expenditures made against their respective candidates in congressional elections; (4) establish guidelines for determining the Federal election portion of amounts paid by national and State committees of a political party for a mixed political activity (an activity, such as a voter registration program, for both influencing an election for Federal office and for other purposes); (5) subject such payments to the limitations and reporting requirements for expenditures; (6) require such payments to be made only from an account subject to the requirements of that Act; (7) repeal provisions excluding funds for constructing or purchasing office facilities from the definition of a "contribution"; (8) define "local committee" as an organization that is responsible for the daily operation of a political party at the local level; and (9) allow such local committees to make contributions and expenditures without limitation to any candidate who is affiliated with the party the committee represents and who is a candidate for Senator or Representative in the State involved.

Amends the Internal Revenue Code to allow a tax credit for qualified political contributions to candidates for State or Federal office. Limits such credit to $250 for a taxable year.