To amend the Internal Revenue Code of 1986 to exempt from tax 100 percent of the net capital gain of certain low-income individuals.

Amends the Internal Revenue Code to allow the deduction of 100 percent of the net capital gain of certain qualified low-income individuals. Limits such deduction to $25,000 ($12,500 in the case of a separate return by a married individual) plus the long-term capital gain from the sale or exchange of closely held business interests or the principal residence of the taxpayer. Provides for determining the eligibility of a qualified individual. Makes such deduction inapplicable to estates and trusts. Allows such deduction in computing adjusted gross income.