A bill to increase the interest exemption to $1,000 in the case of taxpayers who are not elderly, to exclude from gross income all interest in the case of taxpayers who are elderly, to make permanent the exemption of certain interest income from tax, and for other purposes.

Amends the Internal Revenue Code to increase to $1,000 ($2,000 for joint returns) the amount of interest which may be excluded from gross income. Provides an unlimited exclusion of interest income for individuals over age 65.

Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the termination date for the exclusion from gross income of interest and dividend income.