To amend the Federal Election Campaign Act of 1971 to reduce the limitation amounts for contributions to candidates for Federal office and to amend the Internal Revenue Code of 1986 to provide a tax credit for contributions to candidates for public office.

Amends the Federal Election Campaign Act of 1971 to reduce from: (1) $1,000 to $500 the limitation on contributions by persons other than multicandidate political committees to any candidate for Federal office; and (2) $5,000 to $500 the limitation on contributions by such committees to any such candidate.

Amends the Internal Revenue Code to provide tax credits for contributors to candidates for public office equal to 50 percent of the annual total of a contributor's political contributions. Limits tax credits to an annual total of $125 and $250 respectively for individual and joint contributors. Disallows estates and trusts from receiving such tax credits.