Q: Wrestler A takes his/her second injury timeout at the end of the first 30 second tiebreaker. Wrestler B already has choice at the start of the second 30 second tiebreaker. Therefore wrestler B will get his/her choice again on the first restart. Wrestler B earns an escape and leads by 2-1, both wrestlers go out of bounds. Wrestler B is given his/her choice and wants to choose neutral. Is this permissible?
A: You are right that wrestler B would get their choice on the restart. However, the only options during all the 30 second TB's (this includes the ultimate TB) is top or bottom. Regardless if it is at the onset of the period or a restart due to a 2nd ITO or the 3rd penalty being a stalling call. Neutral is not an option even through he had earned an escape prior to the restart as in the described situation. Keep in mind that the offensive wrestler, on any restart, regardless whether it is in the regulation periods or in the 2 - 30 second TB periods, may elect to give the defensive wrestler an escape. Of course, this would result in awarding 1 point, and both wrestlers would then be in a neutral position.
Don't forget to read the NFHS interpretations: http://www.nfhs.org/content.aspx?id=7877.