A bill to amend the Internal Revenue Code of 1954 to exempt from income tax the capital gain from the first resale of new capacity stock.

Amends the Internal Revenue Code to exclude from the gross income of an individual gain from the first sale of new capacity stock by the taxpayer first acquiring it from the issuer (other than a broker or dealer in securities acquiring such stock in the ordinary course of business for public sale).

Defines "new capacity stock" as stock issued after September 1, 1980, the proceeds from the sale of which by the issuer are dedicated to, and used exclusively for, investment in depreciable machinery and equipment.