To amend the Internal Revenue Code of 1954 to provide for correction of inequities respecting losses of retired pay sustained by certain individuals who retired form the Armed Forces before June 1, 1958.

[AI summary unavailable — showing source text] Allows an income tax credit under the Internal Revenue Code for individuals who retired from the Armed Forces prior to June 1, 1958, to correct losses of retired pay sustained by such individuals. Limits the amount of the credit for any taxable year to the lowest of the following: (1) an amount equal to one-sixth of the lost retired or retainer pay; (2) the amount of the tax imposed for such taxable year, reduced by the sum of the credits allowable under the Internal Revenue Code provisions relating to tax withheld at source on tax-free covenant bonds, relating to foreign tax credit, relating to partially tax exempt interest, relating to retirement income, and relating to investment in certain depreciable property; (3) an amount equal to the excess of the lost retired or retainer pay over the sum of the credits allowable for prior taxable years.…