A bill to amend the Internal Revenue Code of 1954 to increase the amount of the personal exemption to $1,000, to increase the amount of the standard deduction, to lower the tax rates which apply to certain low- and moderate-income brackets, to increase the amount of the investment tax credit and for other purposes.

Increases the personal exemption from $750 to $1,000; the ceiling on the percentage standard deduction from $2,000 to $3,000 ($1,500 in the case of a married individual filing a separate return); and the low-income allowance from $1,300 to $2,000.

Increases the amounts of the withholding exemptions with respect to the percentage method of withholding income tax at the source.

Provides for a reduction by one percentage point of the tax rates imposed on the $28,000 bracket and below (in the case of married individuals and heads of households) or, in the case of unmarried individuals or married individuals filing separate returns, a one percentage point reduction of the tax rates imposed on the $26,000 bracket and below.

Increases the investment credit from 7 to 10 percent. Repeals the limitations on the use of such credit relative to the useful life of depreciable property so that the entire amount of the investment credit may be utilized in the taxable year in which the investment is made.

Provides for corresponding adjustments to the basis of property by an amount equal to the investment credit utilized for the taxable year.

Redefines the term "public utility property" for purposes of increasing the amount of the investment credit for public utilities.