A bill to amend the Internal Revenue Code of 1954 to increase the competitiveness of American firms operating abroad and to help increase markets for United States exports by providing for a system of residence based taxation.

Amends the Internal Revenue Code to increase from $20,000 to $75,000 in 1981 (with annual adjustments up to $95,000 in 1985 and thereafter) the earned income exclusion for U.S. citizens working abroad who are bona fide residents of a foreign country. Repeals the requirement that, as a condition of their employment, such individuals reside in a hardship area. Reduces from 17 to 11 months the residency requirement for such exclusion. Maintains the 17 month residency requirement and provides a special rule for the determination of the excludable amount in the case of highly compensated individuals.

Waives the residency requirements imposed by this Act for individuals who would have otherwise met such requirements but were required to leave a foreign country due to war, civil unrest, or similar adverse conditions precluding the normal course of business.

Provides for an income tax exclusion for the value of employer-provided lodging in a camp in cases where satisfactory housing is not generally available.

Reduces from 17 to 11 months the foreign residency requirement with respect to the deduction for certain housing expenses of living abroad. Revises the method of computation of such deduction.