A bill to amend the Internal Revenue Code to exclude from recapture investment tax credits used to fund tax credit employee stock ownership plans and to permit recovery by such plans of previously recaptured investment tax credits.

Amends the Internal Revenue Code to exempt from recapture investment tax credits used to fund tax credit stock ownership plans of a regulated public utility engaged in the furnishing of electric energy. Limits such exclusion to amounts attributable to qualified progress expenditures. Requires that the disposition of investment property requiring recapture must be due to: (1) legislation; (2) failure to obtain regulatory approval; (3) governmental action; (4) court order; or (5) transfer to another regulated public utility or a governmental agency. Permits the recovery by such plans of tax credits previously recaptured due to such forced dispositions.