Capital Formation and Jobs Creation Act of 1994

Capital Formation and Jobs Creation Act of 1994 - Amends the Internal Revenue Code to allow a 50 percent income tax deduction for the net capital gain of both corporate and noncorporate taxpayers.

Requires indexing, based on the gross national product deflator, of the adjusted basis of certain assets (corporate stock and tangible property that is a capital asset or property used in a trade or business) that have been held for more than one year at the time of sale or other transfer, solely for the purpose of determining gain or loss.

Allows an itemized deduction for losses arising from the sale or exchange of a principal residence.