A bill to amend the Internal Revenue Code of 1954 to revise certain provisions concerning the minimum tax for tax preferences, the taxation of capital gains, and the deductibility of certain amounts for interest, depletion and State and local income taxes.

Sets forth provisions concerning the minimum tax for tax preferences, the taxation of capital gains, and the deductibility of certain amounts for interests, depletion, and State and local income taxes, under the Internal Revenue Code.

Provides that the Secretary of the Treasury or his delegate shall, as soon as practicable but in any event not later than 90 days after the date of the enactment of this Act, submit to the Committee on Ways and Means of the House of Representatives a draft of any technical and conforming changes in the Internal Revenue Code of 1954 which are necessary to reflect throughout such Code the changes in the substantive provisions of law made by this Act.

Imposes for each taxable year, with respect to the income of every person, a tax equal to 20 percent (instead of 10 percent) of the amount (if any) by which the sum of the items of tax preference exceeds $12,000 (instead of $30,000).

States that in the case of an item of tax preference which is a deduction from gross income, the taxpayer may elect to waive the deduction of all or part of such item, and the amount so waived shall not be taken into account for purposes of this part.

Declares that in the case of the death of a taxpayer, there shall be included in computing taxable income for the taxable period in which falls the date of his death the gains and losses which would be taken into account if the taxpayer had sold all property which is considered to have been acquired from or to have passed from the decedent taxpayer at a selling price equal to its fair market value at death, or, if an election is made, at a price equal to its fair market value on such date.

Exempts household or personal effects whose fair market value is less than $2,000 and property which passes or has passed from the decedent to his surviving spouse.

Includes in computing taxable income for the taxable period in which the transfer of property by gift was made, the gains and losses which would be taken into account if the taxpayer had sold the transferred property at a selling price equal to its fair market value at the time of the transfer. Exempts property transferred to a spouse, the first $1,000 of the amount of gain which would otherwise be taken into account and property subject to tax upon transfer to a charity.

Increases to one year the holding period of capital assets. Allows as a credit against the tax imposed an amount equal to 40 percent of the State and local income taxes paid or accrued by the taxpayer during the taxable year.

Reduces from 22 percent to 15 percent the percentage depletion rate. Allows as a deduction the amount of any interest paid or accrued with in the taxable year on indebtedness secured by property owned and used by the taxpayer as his principal residence during the taxable year.