To amend the Internal Revenue Code of 1986 to allow individuals an exlusion from gross income for certain amounts of capital gains distributions from regulated investment companies.

Amends the Internal Revenue Code to exclude, subject to a $5,000 maximum exclusion (double for a joint return), from gross income a capital gain dividend: (1) which is distributed by a regulated investment company; and (2) which is automatically reinvested by the company in the stock of such company with respect to which the dividend is distributed.