A bill to amend the Internal Revenue Code of 1954 to provide the individual taxpayer the option of either a tax credit or an exclusion from gross income for interest on savings.

Revises the Internal Revenue Code to allow as a credit against the income tax, or to exclude from gross income, amounts received during the taxable year as interest on accounts in a savings institution which invests such accounts in cash, obligations of the United States, certificates of deposit, loans secured by a deposit, and loans secured by residential real property.

Limits such credit to a maximum of $250 on a joint return, and limits such exclusion to $1,000 in the case of a joint return.