A bill to amend the Internal Revenue Code of 1986 to allow individuals to exclude certain amounts of interest from gross income.

Amends the Internal Revenue Code to exclude from gross income interest received during a taxable year up to $2,500 ($5,000 in the case of a joint return). Makes such exclusion applicable to distributions from regulated investment companies and real estate investment trusts. Makes certain nonresident aliens ineligible for such exclusion.