An act to provide certain benefits to individuals held hostage in Iran and to similarly situated individuals, and for other purposes.
PL 96-449 (H.R.7085), enacted 10/14/1980

PUBLIC LAW 96-449—OCT. 14, 1980 
94 STAT. 1967 
Public Law 96-449 
96th Congress 
A n Act 
To provide certain benefits to individuals held hostage in Iran and to similarly 
Oct. 14, 1980 
situated individuals, and for other purposes. 
[H.R. 7085] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That this Act may be 
cited as the "Hostage Relief Act of 1980". 
?°f 
*^#fn?n^'^^ 
Act of 1980. 
TITLE I—SPECIAL PERSONNEL BENEFITS 
DEFINITIONS 
5 u s e 5561 note. 
SEC. 101. For purposes of this title— 
^ ^^^ ^^^^ ^°t^-
(1) The term "American hostage" means any individual who, 
while— 
(A) in the civil service or the uniformed services of the 
United States, or 
(B) a citizen or resident alien of the United States render-
ing personal service to the United States abroad similar to 
the service of a civil officer or employee of the United States 
(as determined by the Secretary of State), 
is placed in a captive status during the hostage period. 
(2) The term "hostage period" means the period beginning on 
November 4,1979, and ending on the later of^ 
(A) the date the President specifies, by Executive order, as 
the date on which all citizens and resident aliens of the 
United States who were placed in a captive status due to the 
seizure of the United States Embassy in Iran have been 
returned to the United States or otherwise accounted for, or 
(B) January 1,1983. 
(3) The term "family member", when used with respect to any 
American hostage, means— 
(A) any dependent (as defined in section 5561 of title 5, 
United States Code) of such hostage; and 
(B) any member of the hostage's family or household (as 
determined under regulations which the Secretary of State 
shall prescribe). 
(4) The term "captive status" means a missing status arising 
because of a hostile action abroad— 
(A) which is directed against the United States during the 
hostage period; and 
(B) which is identified by the Secretary of State in the 
Federal Register. 
(5) The term "missing status"— 
(A) in the case of employees, has the meaning given it in 
section 5561(5) of title 5, United States Code; 
(B) in the case of members of the uniformed services, has 
the meaning given it in section 551(2) of title 37, United 
States Code; and 
79-194 O—81—pt. 2 
44 : QL3 
94 STAT. 1968 
PUBLIC LAW 96-449—OCT. 14, 1980 
(C) in the case of other individuals, has a similar meaning 
as that provided under such sections, as determined by the 
Secretary of State. 
(6) The terms "pay and allowances", "employee", and 
"agency" have the meanings given to such terms in section 5561 
of title 5, United States Code, and the terms "civil service", 
"uniformed services", and "armed forces" have the meanings 
given to such terms in section 2101 of such title 5. 
PAY AND ALLOWANCES MAY BE ALLOTTED TO SPECIAL SAVINGS FUND 
5 use 5561 note. 
SEC. 102. (a) The Secretary of the Treasury shall establish a savings 
fund to which the head of an agency may allot all or any portion of 
the pay and allowances of any American hostage which are for pay 
periods during which the American hostage is in a captive status and 
which are not subject to an allotment under section 5563 of title 5, 
United States Code, under section 553 of title 37, United States Code, 
or under any other provision of law. 
Interest rate. 
(b) Amounts S
O allotted to the savings fund shall bear interest at a 
rate which, for any calendar quarter, shall be equal to the average 
rate paid on United States Treasury bills with three-month maturi-
ties issued during the preceding calendar quarter. Such interest shall 
be compounded quarterly. 
(c) Amounts may be allotted to the savings fund from pay and 
allowances for any pay period ending after November 4, 1979, and 
before the establishment of the savings fund. Interest on amounts 
allotted from the pay and allowances for any such pay period shall be 
calculated as if the allotment had occurred at the end of the pay 
period. 
Withdrawal 
(d) Amounts in the savings fund credited to any American hostage 
procedures. 
ghaU be considered as pay and allowances for purposes of 
section 5563 
of title 5, United States Code, (or in the case of a member of the 
uniformed services, for purposes of section 553 of title 37, United 
States Code) and shall otherwise be subject to withdrawal under 
procedures which the Secretary of the Treasury shall establish. 
MEDICAL A N D HEALTH CARE AND RELATED EXPENSES 
5 use 5561 note. 
SEC. 103. Under regulations prescribed by the President, the head 
of an agency may pay O
t
)
y advancement or reimbursement) any 
individual who is an American hostage, or any family member of 
such an individual, for medical and health care, and other expenses 
related to such care, to the extent such care— 
(1) is incident to that individual being an American hostage; 
and 
(2) is not covered by insurance. 
EDUCATION AND TRAINING 
5 use 5561 note. 
gac. 104. (a)(1) Under regulations prescribed by the President, the 
head of an agency shall pay (by advancement or reimbursement) a 
spouse or child of an American hostage for expenses incurred for 
subsistence, tuition, fees, supplies, books, and equipment, and other 
educational expenses, while attending an educational or training 
institution. 
(2) Except as provided in paragraph (3), payments shall be available 
under this subsection for a spouse or child of an individual who is an 
American hostage for education or training which occurs— 
PUBLIC LAW 96-449—OCT. 14, 1980 
94 STAT. 1969 
(A) after the ninetieth day after the date the individual is 
placed in a captive status, and 
(B) on or before— 
(i) the end of any semester or quarter (as appropriate) 
which begins before the date on which the hostage ceases to 
be in a captive status, or 
(ii) if the educational or training institution is not operated 
on a semester or quarter system, the earlier of the end of any 
course which began before such date or the end of the twelve-
week period following that date. 
In order to respond to special circumstances, the President may 
specify a date for purposes of cessation of assistance under subpara-
graph (B) which is later than the date which would otherwise apply 
under subparagraph (B). 
(3) In the event an American hostage dies and the death is incident 
to that individual being an American hostage, payments shall be 
available under this subsection for a spouse or child of an individual 
who is an American hostage for education or training which occurs 
after the date of death. 
(4) The preceding provisions of this subsection shall not apply with 
respect to any spouse or child who is eligible for assistance under 
chapter 35 of title 38, United States Code. 
(b)(1) In order to respond to special circumstances, the head of an 
agency may, under regulations prescribed by the President, pay (by 
advancement or reimbursement) an American hostage for expenses 
incurred for subsistence, tuition, fees, supplies, books, and equip-
ment, and other educational expenses, while attending an educa-
tional or training institution. 
(2) Payments shall be available under this subsection for an 
American hostage for education or training which occurs— 
(A) after the termination of such hostage's captive status, and 
(B) on or before— 
(i) the end of any semester or quarter (as appropriate) 
which begins before the date which is 10 years after the day 
on which the hostage ceases to be in a captive status, or 
(ii) if the educational or training institution is not operated 
on a semester or quarter system, the earlier of the end of any 
course which began before such date or the end of the twelve-
week period following that date. 
(c) Assistance under this section shall be discontinued for any 
individual whose conduct or progress is unsatisfactory under stand-
ards consistent with those established pursuant to section 1724 of 
title 38, United States Code. 
(d) In no event may assistance be provided under this section for 
any individual for a period in excess of forty-five months (or the 
equivalent thereof in part-time education or training). 
(e) Regulations prescribed by the President under this section shall 
provide that the program under this section be consistent with the 
assistance program under chapters 35 and 36 of title 38, United States 
Code. 
EXTENSION OF APPLICABILITY OF CERTAIN BENEFITS OP THE SOLDIERS' 
AND SAILORS' CIVIL REUEF ACT OF 1940 
SEC, 105. (a) Under regulations prescribed by the President, an 
American hostage is entitled to the benefits provided by the Soldiers' 
and Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 501 et seq.), 
including the benefits provided by section 701 (50 U.S.C. App. 591) but 
Assistance after 
hostage's death. 
38 u s e 1700 et 
seq. 
Assistance, 
discontinuance. 
Limitation. 
38 u s e 1700 et 
seq., 1770 et seq. 
5 u s e 5561 note. 
94 STAT. 1970 
PUBLIC LAW 96-449—OCT. 14, 1980 
Definitions. 
50 u s e app. 501. 
excluding the benefits provided by sections 104,105,106,400 through 
408, 501 through 512, and 514 (50 U.S.C. App. 514, 515, 516, 540 
through 548,561 through 572, and 574). 
(b) In applying such Act for purposes of this section— 
(1) the term "person in the military service" is deemed to 
include any such American hostage; 
(2) the term "period of military service" is deemed to include 
the period during which such American hostage is in a captive 
status; and 
(3) references to the Secretary of the Army, the Secretary of 
the Navy, the Adjutant General of the Army, the Chief of Naval 
Personnel, and the Commandant, United States Marine Corps, 
are deemed to be references to the Secretary of State. 
(c) The preceding provisions of this section shall not apply with 
respect to any American hostage covered by such provisions of the 
Soldiers' and Sailors* Civil Relief Act of 1940 by reason of being in the 
Armed Forces. 
Richard Starr. 
5 u s e 5561 note. 
APPLICABILITY TO COLOMBIAN HOSTAGE 
SEC. 106. Notwithstanding the requirements of section 101(1), for 
purposes of this title, Richard Starr of Edmonds, Washington, who, as 
a Peace Corps volunteer, was held captive in Colombia and released 
on or about February 10, 1980, shall be held and considered to be an 
American hostage placed in a captive status on November 4, 1979. 
EFFECTIVE DATE 
5 use 5561 note. 
SEC. 107. The preceding provisions of this title shall take effect as of 
November 4,1979. 
TITLE II—TAX PROVISIONS 
5 u s e 5561 note. 
SEC. 201. COMPENSATION EXCLUDED FROM GROSS INCOME. 
2
6 use 1. 
For purposes of the Internal Revenue Code of 1954, the gross 
income of an individual who was at any time an American hostage 
does not include compensation from the United States received for 
any month during any part of which such individual was— 
(1) in captive status, or 
(2) hospitalized as a result of such individual's captive status. 
5 u s e 5561 note. 
SEC. 202. INCOME TAXES OF HOSTAGES WHERE DEATH RESULTS FROM 
CAPTIVE STATUS. 
(a) GENERAL RULE.—In the case of an individual who was at any 
time an American hostage and who dies as a result of injury or 
disease or physical or mental disability incurred or aggravated while 
such individual was in captive status— 
(1) any tax imposed by subtitle A of the Internal Revenue Code 
2
6 use 1. 
of 1954 shall not apply with respect to— 
(A) the taxable year in which falls the date of such 
individual's death, or 
(B) any prior taxable year ending on or after the first day 
such individual was in captive status, and 
(2) any tax imposed under such subtitle A for taxable years 
preceding those specified in paragraph (1) which is unpaid at the 
date of such individual's death (including interest, additions to 
the tax, and additional amounts)— 
PUBLIC LAW 96-449—OCT. 14, 1980 
94 STAT. 1971 
(A) shall not be assessed, 
(B) if assessed, the assessment shall be abated, and 
(C) if collected, shall be credited or refunded as an overpay-
ment. 
(b) DEATH MUST OCCUR WITHIN 2 YEARS OF CESSATION OF CAPHVE 
STATUS.—This section shall not apply unless the death of the individ-
ual occurs within 2 years after such individual ceases to be in captive 
status. 
SEC. 203. SPOUSE MAY FILE JOINT RETURN. 
5 USC 5561 note. 
(a) GENERAL RULE.—If an individual is an American hostage who is 
in captive status, such individual's spouse may elect to file a joint 
return under section 6013(a) of the Internal Revenue Code of 1954 for 
26 USC 6013. 
any taxable year— 
(1) which begins on or before the day which is 2 years after the 
date on which the hostage period ends, and 
(2) for which such spouse is otherwise entitled to file such a 
joint return. 
O?) CERTAIN RULES MADE APPLICABLE.—For purposes of subsection 
(a), paragraphs (2) and (4) of section 6013(f) of such Code (relating to 
joint return where individual is in missing status) shall apply as if the 
election described in subsection (a) of this section were an election 
described in paragraph (1) of such section 6013(0. 
SEC. 204. TIME FOR PERFORMING CERTAIN ACTS POSTPONED BY REASON 5 USC 5561 note. 
OF CAPTIVE STATUS. 
(a) GENERAL RULE.—In the case of any individual who was at any 
time an American hostage, any period during which he was in captive 
status (and any period during which he was outside the United States 
and hospitalized as a result of captive status), and the next 180 days 
thereafter, shall be disregarded in determining, under the internal 
revenue laws, in respect of any tax liability (including any interest, 
penalty, additional amount, or addition to the tax) of such 
individual— 
(1) whether any of the acts specified in paragraph (1) of section 
7508(a) of the Internal Revenue Code of 1954 was performed 26 USC 7508. 
within the time prescribed therefor, and 
(2) the amount of any credit or refund (including interest). 
(b) APPLICATION TO SPOUSE.—The provisions of this section shall 
apply to the spouse of any individual entitled to the benefits of 
subsection (a). The preceding sentence shall not cause this section to 
apply to any spouse for any taxable year beginning more than 2 years 
after the date on which the hostage period ends. 
(c) SECTION 7508(d) MADE AppucABLE.—Subsection (d) of section 
7508 of the Internal Revenue Code of 1954 shall apply to subsection 
(a) in the same manner as if the benefits of subsection (a) were 
provided by subsection (a) of such section 7508. 
SEC. 205. DEFINITIONS AND SPECIAL RULES. 
5 USC 5561 note. 
(a) AMERICAN HOSTAGE.—For purposes of this title, the term 
"American hostage" means any individual who, while— 
(1) in the civil service or the uniformed services of the United 
States, or 
(2) a citizen or resident alien of the United States rendering 
personal service to the United States abroad similar to the 
service of a civil officer or employee of the United States (as 
determined by the Secretary of State), 
is placed in a captive status during the hostage period. 
94 STAT. 1972 
PUBLIC LAW 96-449—OCT. 14, 1980 
(b) HOSTAGE PERIOD.—For purposes of this title, the term "hostage 
period" means the period beginning on November 4,1979, and ending 
on whichever of the following dates is the earlier: 
(1) the date the President specifies, by Executive order, as the 
date on which all citizens and resident aliens of the United States 
who were placed in a captive status due to the seizure of the 
United States Embassy in Iran have been returned to the United 
States or otherwise accounted for, or 
(2) December 31,1981. 
(c) CAPTIVE STATUS.—For purposes of this title— 
(1) IN GENERAL.—The term "captive status" means a missing 
status arising because of a hostile action abroad— 
(A) which is directed against the United States during the 
hostage period, and 
(B) which is identified by the Secretary of State in the 
Federal Register. 
(2) MISSING STATUS DEFINED.—The term "missing status"— 
(A) in the case of employees, has the meaning given it in 
section 5561(5) of title 5, United States Code, 
(B) in the case of members of the uniformed services, has 
the meaning given it in section 551(2) of title 37, United 
States Code, and 
(C) in the case of other individuals, has a similar meaning 
as that provided under such sections, as determined by the 
Secretary of State. 
For purposes of the preceding sentence, the term "employee" has 
the meaning given to such term by section 5561(2) of title 5, 
United States Code. 
(d) HOSPITALIZED AS A RESULT OF CAPTIVE STATUS.— 
(1) IN GENERAL.—For purposes of this title, an individual shall 
be treated as hospitalized as a result of captive status if such 
individual is hospitalized as a result of injury or disease or 
physical or mental disability incurred or aggravated while such 
individual was in captive status. 
(2) 2-YEAR UMIT.—Hospitalization shall be taken into account 
for purposes of paragraph (1) only if it is hospitalization— 
(A) occurring en or before the day which is 2 year s after 
the date on which the individual's captive status ends (or, if 
earlier, the date on which the hostage period ends), or 
(B) which is part of a continuous period of hospitalization 
which began on or before the day determined under subpara-
graph (A). 
(e) CIVIL SERVICE; UNIFORMED SERVICES.—For purposes of this 
section, the terms "civil service" and "uniformed services" have the 
meanings given to such terms by section 2101 of title 5, United States 
Code. 
Tehran hostages. 
(f) APPLICATION OF TiTLE TO A L L T E H R A N HOSTAGES.—In t h e Case of 
any citizen or resident alien of the United States who is determined 
by the Secretary of State to have been held hostage in Tehran at any 
time during November 1979, for purposes of this title— 
(1) such individual shall be treated as an American hostage 
whether or not such individual meets the requirements of para-
graph (1) or (2) of subsection (a), and 
(2) if such individual was not in the civil service or the 
uniformed services of the United States— 
Ante, p. 1970. 
(A) section 201 shall be applied by substituting "earned 
income (as defined in section 911(b) of the Internal Revenue 
PUBLIC LAW 96-449—OCT. 14, 1980 
94 STAT. 1973 
5 use 5332 note. 
Richard Starr. 
Code of 1954) attributable to" for "compensation from the 2
6 use 9ii. 
United States received for", and 
(B) the amount excluded from gross income under section 
201 for any month shall not exceed the monthly equivalent Ante, p. 1970. 
of the annual rate of basic pay payable for level V of the 
Executive Schedule, 
(g) APPUCATION OP TITLE TO INDIVIDUAL HELD CAPTIVE IN COLOM-
BIA.—For purposes of this title, Richard Starr of Edmonds, Washing-
ton, who, as a Peace Corps volunteer, was held captive in Colombia, 
shall be treated as an American hostage who was in captive status 
beginning on November 4, 1979, and ending on February 10, 1980. 
(h) SPECIAL RULES.— 
(1) COMPENSATION.—For purposes of this title, the term "com-
pensation" shall not include any amount received as an annuity 
or as retirement pay. 
(2) WAGE WITHHOLDING.—Any amount excluded from gross 
income under section 201 shall not be treated as wages for 
purposes of chapter 24 of the Internal Revenue Code of 1954. 
SEC. 206. STUDY OP TAX TREATMENT OF HOSTAGES. 
(a) STUDY.—The Chief of Staff of the Joint Committee on Taxation 
shall study all aspects of the tax treatment of citizens and resident 
aliens of the United States who are taken hostage or are otherwise 
placed in a missing status. 
(b) REPORT.—The Chief of Staff of 
the Joint Committee on Taxation 
shall, before July 1, 1981, report the results of the study made 
pursuant to subsection (a) to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the 
Senate. 
26 use 3401 et 
seq. 
5 use 5561 note. 
Submittal to 
congressional 
committees. 
TITLE in—TREATMENT OF THE HOSTAGES IN IRAN 
VISITS BY THE INTERNATIONAL RED CROSS 
SEC. 301. (a) The Congress finds that— 
(1) the continued illegal and unjustified detention of the 
American hostages by the Government of Lran has resulted in 
the deterioration of relations between the United States and 
Iran; and 
(2) the protracted length and the conditions of their confine-
ment have reportedly endangered the physical and mental well-
being of 
the hostages. 
5 use 5561 note. 
94 STAT. 1974 
PUBLIC LAW 96-449—OCT. 14, 1980 
(b) Therefore, it is the sense of the Congress that the President 
should make a formal request of the International Ck)mmittee of the 
Red Cross to— 
(1) make regular and periodic visits to the American hostages 
being held in Iran for the purpose of determining whether the 
hostages are being treated in a humane and decent manner and 
whether they are receiving proper medical attention; 
(2) urge other countries to solicit the cooperation of the 
Government of Iran in the visits to the hostages by the Interna-
tional Committee of 
the Red Cross; and 
(3) report to the United States its 
findings 
after each such visit. 
Approved October 14, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT: No. 96-1349, Pt. 1 (Comm. on Post Office and Civil Service), Pt. 2 
(Comm. on Foreign Affairs), and Pt. 3 (Comm. on Ways and 
Means). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Sept. 22, considered and passed House. 
Sept. 30, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 42: 
Oct. 14, Presidential statement.