Investment Incentive Act

Investment Incentive Act - Amends the Internal Revenue Code to restore the pre-1969 tax treatment of capital gains and losses.

Repeals the 50 percent deduction for capital gains as an item of tax preference for the minimum tax.

Lowers the alternative tax on corporate capital gains to 25 percent from 30 percent. Sets the alternative tax on individual capital gains at a maximum rate of 25 percent of net capital gain.

Allows both short-term and long-term capital losses to be deducted dollar for dollar from ordinary income up to a maximum deduction of $1,000 for both.