This bill proposes amendments to the Internal Revenue Code of 1986, introducing a new section that allows individuals to defer the recognition of capital gains from regulated investment companies. Specifically, if a capital gain dividend distributed by a regulated investment company is automatically reinvested into additional shares of that company through a dividend reinvestment plan, the individual will not recognize gain at the time of distribution. The deferred capital gains would only be recognized and become taxable upon certain future events, such as the subsequent sale or redemption of the shares in the distributing company, or upon the death of the individual taxpayer . For shares acquired through such reinvestment, the taxpayer's holding period is automatically treated as one year and a day from the acquisition date, potentially affecting future capital gains tax rates. This deferral provision does not apply to individuals claimed as dependents by another taxpayer, nor does it apply to estates or trusts. The Secretary of the Treasury is authorized to prescribe necessary regulations to implement these changes, which will apply to taxable years ending after the bill's enactment.