II 

109TH CONGRESS 

1ST SESSION S. 1770 

To amend the Internal Revenue Code of 1986 to provide for advance payment 

of the earned income tax credit and the child tax credit for 2005 

in order to provide needed funds to victims of Hurricane Katrina and 

to stimulate local economies. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 26, 2005 

Mr. OBAMA (for himself, Mrs. MURRAY, Mr. CORZINE, Mr. KERRY, and Mr. 

LEVIN) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for advance payment of the earned income tax credit 

and the child tax credit for 2005 in order to provide 

needed funds to victims of Hurricane Katrina and to 

stimulate local economies. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hurricane Katrina 

5 Fast-Track Refunds for Working Families Act of 2005’’. 
2 

•S 1770 IS

1 SEC. 2. FINDINGS. 

2 (1) An estimated 1.3 million households were 

3 affected by Hurricane Katrina, many of which were 

4 working families left with no material belongings 

5 and minimal assets following the storm. 

6 (2) It will be difficult for these working families 

7 to immediately find new employment opportunities 

8 and to restore lost wages, thus depleting their re9 sources for food, housing, clothing, and other neces10 sities. 

11 (3) These working families can be expected to 

12 spend their fast-tracked tax refunds on immediate 

13 necessities which will stimulate local economic activ14 ity. 

15 (4) These families have worked hard, earned 

16 their Child Tax Credit and Earned Income Tax 

17 Credit refunds and should receive them now rather 

18 than later. 

19 SEC. 3. ADVANCE PAYMENT OF EARNED INCOME TAX 

20 CREDIT AND CHILD TAX CREDIT FOR 2005 

21 FOR VICTIMS OF HURRICANE KATRINA. 

22 (a) IN GENERAL.—Subchapter B of chapter 61 of the 

23 Internal Revenue Code of 1986 (relating to rules of special 

24 application) is amended by adding at the end the following 

25 new section: 
3 

•S 1770 IS

1 ‘‘SEC. 6430. ADVANCE PAYMENT OF EARNED INCOME TAX 

2 CREDIT AND CHILD TAX CREDIT FOR 2005 

3 FOR VICTIMS OF HURRICANE KATRINA. 

4 ‘‘(a) IN GENERAL.—Each eligible taxpayer shall be 

5 treated as having made a payment against the tax imposed 

6 by chapter 1 for the taxpayer’s last taxable year ending 

7 in 2004 in an amount equal to— 

8 ‘‘(1) the child tax credit refund amount (if any) 

9 for such taxable year, and 

10 ‘‘(2) the earned income credit refund amount 

11 (if any) for such taxable year. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 

14 taxpayer’ means any taxpayer— 

15 ‘‘(A) who was allowed a credit under sec16 tion 24 (relating to child tax credit) or section 

17 32 (relating to earned income credit) for the 

18 taxpayer’s last taxable year ending in 2004, 

19 and 

20 ‘‘(B) whose address on such taxpayer’s re21 turn for such last taxable year was within an 

22 area determined by the President to warrant in23 dividual or individual and public assistance 

24 from the Federal Government under the Robert 

25 T. Stafford Disaster Relief and Emergency As26 sistance Act by reason of Hurricane Katrina. 
4 

•S 1770 IS

1 ‘‘(2) CHILD TAX CREDIT REFUND AMOUNT.— 

2 The child tax credit refund amount is the amount of 

3 the credit which would have been allowed under sec4 tion 24 for such last taxable year if only qualifying 

5 children (as defined in section 24(c)) of the taxpayer 

6 for such year who had not attained age 17 as of De7 cember 31, 2005, were taken into account. 

8 ‘‘(3) EARNED INCOME CREDIT REFUND

9 AMOUNT.—The earned income credit refund amount 

10 is the amount of the credit which would have been 

11 allowed under section 32 for such last taxable year 

12 if— 

13 ‘‘(A) the amount in section 32(b)(2)(B) 

14 were $2,000, and 

15 ‘‘(B) an individual is treated as meeting 

16 the age requirements under section 32 only if 

17 such requirements are met as of December 31, 

18 2005. 

19 ‘‘(c) TIMING OF PAYMENTS.—In the case of any over20 payment attributable to this section, the Secretary shall, 

21 subject to the provisions of this title, refund or credit such 

22 overpayment as rapidly as possible and shall ensure that 

23 adequate systems and delivery mechanisms are in place 

24 for the prompt delivery of refunds to eligible recepients. 

25 ‘‘(d) COORDINATION WITH CREDITS.— 
5 

•S 1770 IS

1 ‘‘(1) IN GENERAL.—The amount of credit 

2 which would (but for this subsection and section 26) 

3 be allowed under sections 24 and 32, as the case 

4 may be, for the taxpayer’s first taxable year begin5 ning in 2005 shall be reduced (but not below zero) 

6 by so much of the payment made to the taxpayer 

7 under this section as is attributable to such section 

8 24 or 32. Any failure to so reduce the credit shall 

9 be treated as arising out of a mathematical or cler10 ical error and assessed according to section 

11 6213(b)(1). 

12 ‘‘(2) JOINT RETURNS.—In the case of a pay13 ment under this section with respect to a joint re14 turn, half of such payment shall be treated as hav15 ing been made to each individual filing such return. 

16 ‘‘(e) NO INTEREST.—No interest shall be allowed on 

17 any overpayment attributable to this section.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections 

19 for such subchapter B is amended by adding at the end 

20 the following new item: 

‘‘Sec. 6430. Advance payment of earned income tax credit and child tax credit 

for 2005 for victims of Hurricane Katrina.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date of the enactment 

23 of this Act. 

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