A bill to prevent the retroactive assessment of certain deficiencies in the case of employees of the Panama Canal Zone Government or of the Panama Canal Company.

Allows employees of the Canal Zone Government or the Panama Canal Company an income tax exclusion for amounts paid to the U.S. Government for rent of a residence in the Canal Zone (or for residential utilities) to the extent that such amounts are attributable to periods before October 1, 1979, during which such individuals were employed by the Canal Zone Government or the Panama Canal Company and were required to reside in the Canal Zone as a condition of employment. Permits a waiver of the statute of limitation barring any refund of amounts paid, if a claim for a refund is filed within one year of the enactment of this Act.