22 U.S. Code § 5510 - United States Government compensation for victims of terrorism
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The President shall submit to the Congress, not later than one year after November 16, 1990, recommendations on whether or not legislation should be enacted to authorize the United States to provide monetary and tax relief as compensation to United States citizens who are victims of terrorism.
The President may establish a board to develop criteria for compensation and to recommend changes to existing laws to establish a single comprehensive approach to victim compensation for terrorist acts.
(c) Income tax benefit for victims of Lockerbie terrorism
(1) In general
Subject to paragraph (2), in the case of any individual whose death was a direct result of the Pan American Airways Flight 103 terrorist disaster over Lockerbie, Scotland, on December 21, 1988, any tax imposed by subtitle A of title 26 shall not apply—
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