A bill to amend the Internal Revenue Code of 1954 to exclude from gross income compensation received by Federal employees while being held hostage in a foreign country.

Amends the Internal Revenue Code to exclude from gross income compensation received by members of the Armed Forces of the United States and Federal employees while held hostage in a foreign country. Specifies that such detention must be in connection with a serious international incident which the President designates as such by Executive Order. Disqualifies individuals who are officially determined to be absent from their post of duty without authority.