To amend the Internal Revenue Code of 1986 to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies.

Amends the Internal Revenue Code to provide that, in the case of an electing individual, no gain shall be recognized on the receipt of a capital gain dividend distributed by a regulated investment company if such capital gain dividend is automatically reinvested in additional shares of the company pursuant to a dividend reinvestment plan.

States that such deferral shall not apply to: (1) an individual with respect to whom a personal exemption is allowable to another person; and (2) an estate or trust.