A bill to amend the Internal Revenue Code of 1954 to provide for the nonrecognition of gain on sales and exchanges of productive assets.

Amends the Internal Revenue Code to provide that gain from the sale or exchange of productive assets shall be recognized for tax purposes only to the extent that the sales price of the productive asset exceeds the cost of replacement property purchased by the taxpayer within a two year period of the sale of such asset. Defines "productive asset" as any share of stock in a corporation or evidence of indebtedness, property used in a trade or business, and any real property used or rented for residential or business purposes, but not including property used as a principal residence.