To amend the Internal Revenue Code to provide that capital gains not be recognized if invested in certain small businesses.

Amends the Internal Revenue Code to recognize gain on the sale of any capital asset, if the taxpayer so elects, only to the extent that the amount realized exceeds the cost of any eligible small business investment purchased by the taxpayer during the 12 months before the sale, reduced by any portion of the cost previously taken into account under these provisions. Terminates these provisions after the year 2002.