To amend the Internal Revenue Code of 1986 to extend the special rule for recognition of gain on dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy.

Amends the Internal Revenue Code to extend through 2009 the special rule for recognition of gain from the sale or disposition of: (1) property used to provide electric transmission services; or (2) any stock or partnership interest in a corporation or partnership whose principal trade or business consists of providing electric transmission services.