To amend the Internal Revenue Code of 1986 to exclude gain or loss from the sale of livestock from the computation of capital gain net income for purposes of the earned income credit.

Amends the Internal Revenue Code to exclude gain or loss from the sale of livestock (as defined in existing provisions relating to property used in the trade or business and involuntary conversions) from the definition of "disqualified income" for purposes of the earned income credit. Applies the amendment to taxable years beginning after December 31, 1995.