A bill to amend the Internal Revenue Code of 1954 to provide tax incentives for the establishment of general stock ownership plans.

Amends the Internal Revenue Code to confer tax-exempt status on a general stock ownership plan (GSOP) maintained by the United States, a State, or a locality to enable its residents to purchase corporate securities. Sets forth requirements relating to the residency of GSOP participants, distributions of stock to participants, and the limitations on ownership of any corporation's GSOP stock (ten shares) which a sponsoring jurisdiction must incorporate in its stock ownership plan.

Defers taxation on stock transferred to a GSOP participant until such participant sells or exchanges the stock. Defers taxation on distributions made to a GSOP participant until such amounts are actually paid, and treats such amounts as dividends for purposes of income taxation.

Allows an income tax deduction for payments to a general stock ownership plan by a corporation.

Subjects a general stock ownership plan to the tax on prohibited transactions if a GSOP fails to make distributions as required under its plan.

Exempts a general stock ownership plan from the tax on unrelated business activities.

Excludes from gross income the interest paid on an industrial development bond obligation of a general stock ownership plan.