A bill to amend the Internal Revenue Code of 1986 to provide that no deduction shall be allowed for personal income taxes paid to a State (or political subdivision thereof) which taxes nonresidents on income derived from certain Federal areas.

Amends the Internal Revenue Code to disallow an income tax deduction for personal income taxes paid to any State that taxes residents of adjacent States on income from activities performed at Fort Campbell in Kentucky and Tennessee or the Portsmouth Naval Shipyard in Maine and New Hampshire.