Sec. 207. Increased exclusion for incentive stock options; exception from alter-
native minimum tax.
TITLE III—SAVINGS AND INVESTMENT
Sec. 301. Exclusion from gross income of certain amounts of the net capital
gain of individuals.
Sec. 302. Increase in maximum amount of deduction for IRAs.
Sec. 303. Higher elective deferral limit if employee’s spouse is not a participant
in section 401(k) plan.
TITLE IV—EDUCATION
Sec. 401. Amendments to encourage additional school construction.
Sec. 402. Modification of arbitrage rebate rules applicable to public school con-
struction bonds.
Sec. 403. Additional increase in arbitrage rebate exception for governmental
bonds used to finance public school facilities.
Sec. 404. Exclusion from gross income of education distributions from qualified
tuition programs; coverage of private programs.
TITLE I—FAMILY RELIEF
Subtitle A—Tax Relief
SEC. 101. BASIC STANDARD DEDUCTION FOR MARRIED IN-
DIVIDUALS TO BE TWICE THE DEDUCTION
FOR UNMARRIED INDIVIDUALS.
(a) IN GENERAL.—Paragraph (2) of section 63(c)
(relating to standard deduction) is amended—
(1) by striking ‘‘$5,000’’ in subparagraph (A)
and inserting ‘‘twice the dollar amount in effect
under subparagraph (C) for the taxable year’’,
(2) by adding ‘‘or’’ at the end of subparagraph
(B),
(3) by striking ‘‘in the case of’’ and all that fol-
lows in subparagraph (C) and inserting ‘‘in any
other case.’’, and
(4) by striking subparagraph (D).
(b) TECHNICAL AMENDMENT.—Subparagraph (B) of
section 1(f)(6) is amended by striking ‘‘(other than with’’
and all that follows through ‘‘shall be applied’’ and insert-
ing ‘‘(other than sections 63(c)(4) and 151(d)(4)(A)) shall
be applied’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 102. INCREASE IN PERSONAL EXEMPTION.
(a) IN GENERAL.—Paragraph (1) of section 151(d)
(relating to exemption amount) is amended by striking
‘‘$2,000’’ and inserting ‘‘$3,500’’.
(b) CONFORMING AMENDMENT.—Subparagraph (A)
of section 151(d)(4) is amended to read as follows:
‘‘(A) ADJUSTMENT TO BASIC AMOUNT OF
EXEMPTION.—In the case of any taxable year
beginning in a calendar year after 2000, the
dollar amount contained in paragraph (1) shall
be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 103. REDUCTION OF INDIVIDUAL INCOME TAXES BY
INCREASING AMOUNTS OF INCOME SUBJECT
TO TAX AT THE 15 PERCENT RATE.
(a) GENERAL RULE.—Section 1 (relating to tax im-
posed) is amended by striking subsections (a) through (e)
and inserting the following:
‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES.—There is hereby imposed on
the taxable income of every married individual (as defined
in section 7703) who makes a single return jointly with
his spouse under section 6013, and every surviving spouse
(as defined in section 2(a)), a tax determined in accord-
ance with the following tables:
‘‘(1) FOR
TAXABLE
YEARS
BEGINNING
IN
2000.—
‘‘If taxable income is:
The tax is:
Not over $53,560 ..........................
15% of taxable income.
Over 
$53,560 
but 
not 
over
$124,900.
$8,034, plus 28% of the excess over
$53,560.
Over 
$124,900 
but 
not 
over
$260,500.
$28,009.20, plus 31% of the excess
over $124,900.
Over 
$260,500 
but 
not 
over
$566,300.
$70,045.20, plus 36% of the excess
over $260,500.
Over $566,300 ...............................
$180,133.20, plus 39.6% of the ex-
cess over $566,300.
‘‘(2) FOR
TAXABLE
YEARS
BEGINNING
IN
2001.—
‘‘If taxable income is:
The tax is:
Not over $55,105 ..........................
15% of taxable income.
Over 
$55,105 
but 
not 
over
$124,900.
$8,265.75, plus 28% of the excess
over $55,105.
Over 
$124,900 
but 
not 
over
$260,500.
$27,808.35, plus 31% of the excess
over $124,900.
Over 
$260,500 
but 
not 
over
$566,300.
$69,844.35, plus 36% of the excess
over $260,500.
Over $566,300 ...............................
$179,932.35, plus 39.6% of the ex-
cess over $566,300.
‘‘(3) FOR TAXABLE YEARS BEGINNING AFTER
2001.—
‘‘If taxable income is:
The tax is:
Not over $56,650 ..........................
15% of taxable income.
Over 
$56,650 
but 
not 
over
$124,900.
$8,497.50, plus 28% of the excess
over $56,650.
Over 
$124,900 
but 
not 
over
$260,500.
$27,607.50, plus 31% of the excess
over $124,900.
Over 
$260,500 
but 
not 
over
$566,300.
$69,643.50, plus 36% of the excess
over $260,500.
Over $566,300 ...............................
$179,731.50, plus 39.6% of the ex-
cess over $566,300.
‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im-
posed on the taxable income of every head of a household
(as defined in section 2(b)) a tax determined in accordance
with the following tables:
‘‘(1) FOR
TAXABLE
YEARS
BEGINNING
IN
2000.—
‘‘If taxable income is:
The tax is:
Not over $35,932 ..........................
15% of taxable income.
Over 
$35,932 
but 
not 
over
$89,150.
$5,389.80, plus 28% of the excess
over $35,932.
Over 
$89,150 
but 
not 
over
$144,400.
$20,290.84, plus 31% of the excess
over $89,150.
Over 
$144,400 
but 
not 
over
$283,150.
$37,418.34, plus 36% of the excess
over $144,400.
Over $283,150 ...............................
$87,368.34, plus 39.6% of the excess
over $283,150.
‘‘(2) FOR
TAXABLE
YEARS
BEGINNING
IN
2001.—
‘‘If taxable income is:
The tax is:
Not over $36,969 ..........................
15% of taxable income.
Over 
$36,969 
but 
not 
over
$89,150.
$5,545.35, plus 28% of the excess
over $36,969.
Over 
$89,150 
but 
not 
over
$144,400.
$20,156.03, plus 31% of the excess
over $89,150.
Over 
$144,400 
but 
not 
over
$283,150.
$37,283.53, plus 36% of the excess
over $144,400.
Over $283,150 ...............................
$87,233.53, plus 39.6% of the excess
over $283,150.
‘‘(3) FOR TAXABLE YEARS BEGINNING AFTER
2001.—
‘‘If taxable income is:
The tax is:
Not over $38,514 ..........................
15% of taxable income.
Over 
$38,514 
but 
not 
over
$89,150.
$5,777.10, plus 28% of the excess
over $38,514.
Over 
$89,150 
but 
not 
over
$144,400.
$19,955.18, plus 31% of the excess
over $89,150.
Over 
$144,400 
but 
not 
over
$283,150.
$37,082.68, plus 36% of the excess
over $144,400.
Over $283,150 ...............................
$87,032.68, plus 39.6% of the excess
over $283,150.
‘‘(c) OTHER INDIVIDUALS.—There is hereby imposed
on the taxable income of every individual (other than an
individual to whom subsection (a) or (b) applies) a tax
determined in accordance with the following tables:
‘‘(1) FOR
TAXABLE
YEARS
BEGINNING
IN
2000.—
‘‘If taxable income is:
The tax is:
Not over $26,780 ..........................
15% of taxable income.
Over 
$26,780 
but 
not 
over
$62,450.
$4,017, plus 28% of the excess over
$26,780.
Over 
$62,450 
but 
not 
over
$130,250.
$14,004.60, plus 31% of the excess
over $62,450.
Over 
$130,250 
but 
not 
over
$283,150.
$35,022.60, plus 36% of the excess
over $130,250.
Over $283,150 ...............................
$90,066.60, plus 39.6% of the excess
over $283,150.
‘‘(2) FOR
TAXABLE
YEARS
BEGINNING
IN
2001.—