A bill to amend the Internal Revenue Code of 1954 to provide an income tax credit for any individual who performs voluntary service for any organization engaged in the treatment, care, or rehabilitation of the physically handicapped or the mentally ill.

Amends the Internal Revenue Code to allow an individual an income tax credit for 70 percent of any voluntary service contribution made by such individual to a nonprofit, tax-exempt institution for the care of the physically handicapped or mentally ill. Limits the amount of such credit to $750 ($1,500 for joint returns).

Defines "voluntary service contribution" as an amount computed by multiplying the number of uncompensated hours of service which the taxpayer performs for an institution times the greater of $2 or the Federal minimum wage in effect at the time the service was performed. Requires the taxpayer to be eligible for such credit, to have performed during the taxable year, at least 50 hours of service without compensation, for an institution for the physically handicapped or mentally ill.