A bill to amend the Internal Revenue Code of 1954 to provide tax incentives for investment in small corporations doing research in the area of energy development and conservation.

Amends the Internal Revenue Code to allow an income tax deduction for 50 percent (not to exceed $50,000 annually, or $100,000 altogether) of the sum of the amounts paid or incurred to acquire stock in a qualified energy invention corporation. Limits to $25,000 the maximum annual deduction in the case of a married individual filing a separate return.

Defines a "qualified energy invention corporation" as a corporation whose gross annual income does not exceed $100,000 and which owns a patent, or the right to a patent, or has an application for a patent pending, which relates to the invention of an energy saving device or process, or which possesses a letter from the Secretary of the Department of Energy for nonpatentable improvements of such a device or process.