A bill to amend the Internal Revenue Code of 1954 to provide that the investment tax credit shall not be recaptured in the case of certain transfers by air carriers of aircraft used exclusively to provide air transportation.

Amends the Internal Revenue Code to exempt an air carrier who sells aircraft to another air carrier from the investment tax credit recapture rules with respect to such aircraft, unless the aircraft ceases to be used exclusively to provide air transportation.

Provides that the provisions of this Act shall apply to the sale or exchange of aircraft occurring after December 31, 1977, and before January 1, 1985.