This bill amends the Internal Revenue Code of 1986 to introduce a new provision, Section 1046, allowing individuals to defer the recognition of capital gains. Specifically, individuals would not recognize gain on capital gain dividends distributed by regulated investment companies if these dividends are automatically reinvested into additional shares through a dividend reinvestment plan. This measure aims to encourage long-term investment by delaying the tax liability on these reinvested distributions. The deferred capital gains would eventually be recognized upon certain events, such as when the individual subsequently sells or redeems the shares in the distributing company, or upon the individual's death. For shares acquired through such reinvestment, the taxpayer's holding period is treated as one year and a day from the acquisition date. However, this deferral mechanism does not apply to individuals who can be claimed as dependents by another taxpayer, nor does it apply to estates or trusts.