To amend the Internal Revenue Code of 1986 to provide that the statute of limitations shall not bar a claim for credit or refund based on a retroactive determination of an entitlement to receive military disability benefits.

Amends the Internal Revenue Code to provide a special one-year period for claiming an income tax credit or refund based on retroactive determinations of entitlement to military disability benefits. Applies the amendment with respect to determinations that became final after 1989.