A bill to amend the Internal Revenue Code of 1954 to exclude from gross income the interest on deposits in certain savings institutions.

Amends the Internal Revenue Code to exclude from gross income up to $4,000 ($8,000 in the case of married couples filing jointly) of the interest income earned on savings accounts in a bank, savings and loan association, or a credit union. Provides that the $4,000 limitation shall be phased-in between taxable years beginning in 1980 and taxable years beginning in 1983. Disqualifies interest earned by estates and trusts from the tax exclusion.