A bill to amend the Internal Revenue Code of 1954 to allow a tax credit for the purchase of small business stock.

Amends the Internal Revenue Code to allow a nonrefundable income tax credit equal to 15 percent of an individual's investment in small business stock for a taxable year. Limits the dollar amount of such credit to $750 ($1,500 for married individuals filing jointly). Denies the credit to an estate or trust, an individual who is claimed as a dependent, or a nonresident alien.

Defines "small business stock" as stock of a domestic corporation which has equity capital of less than $25,000,000 and which during the previous five years derived more than 50 percent of its income from sources other than royalties, rents, interest, and other types of passive income.

Requires adjustments to the basis of small business stock for which a credit is allowed the taxpayer or for which amounts of the credit are recaptured.