Small Savers and Investment Encouragement Act of 1979

Small Savers and Investment Encouragement Act of 1979 - Amends the Internal Revenue Code to exclude from gross income up to $100 of the interest earned on a savings account. Permits an exclusion of up to $500 for interest which is reinvested in a savings account.

Excludes from gross income up to $500 of dividends received which are reinvested in the stock of domestic corporations.

Requires that the sum of the adjusted basis of stock in domestic corporations held by the taxpayer plus the amount held in a savings account (investment base) on the last day of a taxable year exceed the investment base of the taxpayer as of the first day of such taxable year, plus the amount of dividends and interest excludible for such taxable year.