Jobs Formation Act

Jobs Formation Act - Title I: Individual Income Taxes - Allows a tax credit in the amount of 10 percent (up to $500) the amount of qualified savings deposits and investments made by an individual during the taxable year. Defines qualified investments as amounts used to purchase stock in or debt instruments of a domestic corporation.

Provides that the first $1000 of capital gain shall be excluded from gross income during the taxable year.

Provides, for purposes of the estate tax, that the lesser of: (1) $200,000 and (2) the value of the decedent's interest in a family farming operation continually owned by him for 5 years prior to his death and which passes to a related individual shall be excluded from the value of the taxable estate.

Reduces the normal tax rates imposed on corporations.

Increases the investment credit to 15 percent (12 percent in the case of property constructed or acquired before an unspecified date in March, 1975).

Increases the corporate surtax exemption from $25,000 to $100,000.

Increases the class life variance for purposes of the depreciation deduction allowed for property used in a trade or business or held for the production of income.

Title II: Employee Stock Ownership Plan Financing - Creates special deductions for dividends paid during the taxable year by employers on securities held by an employee stock ownership plan (as defined by this title).

Provides for the distribution of dividends to employees and repurchase of qualifying employer securities from persons receiving distributions.

Provides for the exclusion from gross income of that part of a distribution held or reinvested within 60 days in income-producing assets of equivalent value for the purpose of realizing current income from such assets.