A bill to amend the Internal Revenue Code of 1954 to exclude from gross income interest earned on certain certificates of deposit in financial institutions.

Amends the Internal Revenue Code to exclude from the gross income of individual taxpayers up to $1,000 ($2,000 in the case of joint returns) of interest income earned on certificates of deposits issued by specified financial institutions after June 30, 1981, for the purpose of financing residential mortgages and construction lending. Specifies that such certificates have a one year maturity from date of issuance and bear interest at up to 70 percent of average yield on certain U.S. Treasury bills.