A bill to amend the Internal Revenue Code of 1954 to provide for the partial exclusion of interest from gross income.

Amends the Internal Revenue Code to exclude from gross income dividends received from a domestic corporation up to $100 during a taxable year and interest earned on a withdrawable savings account in a savings bank. Limits the amount of interest excludable to that amount which exceeds the amount of interest or dividends received by the taxpayer during the preceding taxable year up to $500. Permits individuals age 65 and over to exclude a full $500 for a taxable year.