I 

117TH CONGRESS 

2D SESSION H. R. 7099 

To amend the Internal Revenue Code of 1986 to establish a windfall profits 

excise tax on crude oil and to rebate the tax collected back to individual 

taxpayers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 16, 2022 

Mr. DEFAZIO (for himself, Mr. TAKANO, Ms. TLAIB, Ms. PORTER, Mr. CARSON, Mr. COHEN, Ms. KAPTUR, Mr. GARCI ́A of Illinois, Ms. TITUS, Mr. 

JONES, Ms. ROSS, Mr. GRIJALVA, Mr. WELCH, Mr. MALINOWSKI, Ms. 

JAYAPAL, Ms. UNDERWOOD, Ms. PINGREE, and Ms. BARRAGA ́N) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a windfall profits excise tax on crude oil and to rebate 

the tax collected back to individual taxpayers, and for 

other purposes. 

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 ‘‘Stop Gas Price 

5 Gouging Tax and Rebate Act’’. 


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1 SEC. 2. WINDFALL PROFITS TAX. 

2 (a) IN GENERAL.—Subtitle E of the Internal Rev3 enue Code of 1986 (relating to alcohol, tobacco, and cer4 tain other excise taxes) is amended by adding at the end 

5 thereof the following new chapter: 

6 ‘‘CHAPTER 56—WINDFALL PROFITS ON 

7 CRUDE OIL 

‘‘Sec. 5896. Imposition of tax. 

‘‘Sec. 5897. Windfall profit. 

‘‘Sec. 5898. Special rules and definitions. 

8 ‘‘SEC. 5896. IMPOSITION OF TAX. 

9 ‘‘(a) IN GENERAL.—In addition to any other tax im10 posed under this title, there is hereby imposed on any ap11 plicable taxpayer an excise tax in an amount equal to 50 

12 percent of the excess of the windfall profit (as defined in 

13 section 5897(a)) of such taxpayer. 

14 ‘‘(b) APPLICABLE TAXPAYER.—For purposes of this 

15 chapter, the term ‘applicable taxpayer’ means, with re16 spect to a taxable year, a producer of crude oil— 

17 ‘‘(1) which has an average daily worldwide pro18 duction of crude oil of at least 300,000 barrels for 

19 the taxable year, and 

20 ‘‘(2) which had gross receipts in excess of 

21 $1,000,000,000 for its last taxable year ending dur22 ing calendar year 2005. 

23 For purposes of this subsection, all persons treated as a 

24 single employer under subsections (a) and (b) of section 


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1 52 shall be treated as 1 person and, in case of a short 

2 taxable year, the rule under section 448(c)(3)(B) shall 

3 apply. 

4 ‘‘SEC. 5897. WINDFALL PROFIT. 

5 ‘‘(a) GENERAL RULE.—For purposes of this chapter, 

6 the term ‘windfall profit’ means the excess of the adjusted 

7 taxable income of the applicable taxpayer for taxable year 

8 2022 over the reasonably inflated average profit for such 

9 taxable year. 

10 ‘‘(b) ADJUSTED TAXABLE INCOME.—For purposes of 

11 this chapter, with respect to any applicable taxpayer, the 

12 adjusted taxable income for taxable year 2022 is equal to 

13 the taxable income for such taxable year (within the mean14 ing of section 63 and determined without regard to this 

15 subsection)— 

16 ‘‘(1) increased by any interest expense deduc17 tion, charitable contribution deduction, and any net 

18 operating loss deduction carried forward from any 

19 prior taxable year, and 

20 ‘‘(2) reduced by any interest income, dividend 

21 income, and net operating losses to the extent such 

22 losses exceed taxable income for the taxable year. 

23 In the case of any applicable taxpayer which is a foreign 

24 corporation, the adjusted taxable income shall be deter25 mined with respect to such income which is effectively conVerDate Sep 11 2014 01:07 Mar 18, 2022 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7099.IH H7099

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1 nected with the conduct of a trade or business in the 

2 United States. 

3 ‘‘(c) REASONABLY INFLATED AVERAGE PROFIT.— 

4 For purposes of this chapter, with respect to any applica5 ble taxpayer, the reasonably inflated average profit for any 

6 taxable year is an amount equal to the average of the ad7 justed taxable income of such taxpayer for taxable years 

8 beginning during the 2015–2019 taxable year period (de9 termined without regard to the taxable year with the high10 est adjusted taxable income in such period) plus 10 per11 cent of such average. 

12 ‘‘SEC. 5898. SPECIAL RULES AND DEFINITIONS. 

13 ‘‘(a) WITHHOLDING AND DEPOSIT OF TAX.—The 

14 Secretary shall provide such rules as are necessary for the 

15 withholding and deposit of the tax imposed under section 

16 5896. 

17 ‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 

18 liable for tax under section 5896 shall keep such records, 

19 make such returns, and furnish such information as the 

20 Secretary may by regulations prescribe. 

21 ‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec22 retary shall provide for the filing and the time of such 

23 filing of the return of the tax imposed under section 5896. 

24 ‘‘(d) CRUDE OIL.—The term ‘crude oil’ includes 

25 crude oil condensates and natural gasoline. 


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1 ‘‘(e) BUSINESSES UNDER COMMON CONTROL.—For 

2 purposes of this chapter, all members of the same con3 trolled group of corporations (within the meaning of sec4 tion 267(f)) and all persons under common control (within 

5 the meaning of section 52(b) but determined by treating 

6 an interest of more than 50 percent as a controlling inter7 est) shall be treated as 1 person. 

8 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

9 such regulations as may be necessary or appropriate to 

10 carry out the purposes of this chapter.’’. 

11 (b) CLERICAL AMENDMENT.—The table of chapters 

12 for subtitle E of the Internal Revenue Code of 1986 is 

13 amended by adding at the end the following new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL.’’. 

14 (c) DEDUCTIBILITY OF WINDFALL PROFIT TAX.— 

15 The first sentence of section 164(a) of the Internal Rev16 enue Code of 1986 (relating to deduction for taxes) is 

17 amended by inserting after paragraph (5) the following 

18 new paragraph: 

19 ‘‘(6) The windfall profit tax imposed by section 

20 5896.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2021. 


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1 SEC. 3. ENERGY PRICE REBATES. 

2 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

3 Internal Revenue Code of 1986 is amended by adding at 

4 the end the following new section: 

5 ‘‘SEC. 6433. ENERGY PRICE REBATES. 

6 ‘‘(a) IN GENERAL.—In the case of an eligible indi7 vidual, there shall be allowed as a credit against the tax 

8 imposed by subtitle A for taxable year 2022 an amount 

9 equal to the sum of the energy price rebate amount for 

10 each month beginning in such taxable year. 

11 ‘‘(b) ENERGY PRICE REBATE AMOUNT.—For pur12 poses of this section— 

13 ‘‘(1) IN GENERAL.—The term ‘energy price re14 bate amount’ means, with respect to any taxpayer 

15 for any month beginning in taxable year 2022, an 

16 amount determined by the Secretary as soon as 

17 practicable after the end of such month taking into 

18 account the number of eligible individuals and the 

19 amount of revenues in the general fund resulting 

20 from the tax imposed by section 5896 for such 

21 month. 

22 ‘‘(2) SPECIAL RULE FOR JOINT RETURNS.—In 

23 the case of an eligible individual filing a joint return, 

24 the energy price rebate amount shall be 150 percent 

25 of the amount determined under paragraph (1) with 

26 respect to other taxpayers. 


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1 ‘‘(3) LIMITATION BASED ON ADJUSTED GROSS

2 INCOME.—The amount of the credit allowed by sub3 section (a) (determined without regard to this sub4 section and subsection (e)) shall be reduced (but not 

5 below zero) by 5 percent of so much of the eligible 

6 individual’s adjusted gross income as exceeds— 

7 ‘‘(A) $150,000 in the case of a joint re8 turn, 

9 ‘‘(B) $112,500 in the case of a head of 

10 household, and 

11 ‘‘(C) $75,000 in any other case. 

12 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

13 section, the term ‘eligible individual’ means any individual 

14 other than— 

15 ‘‘(1) any nonresident alien individual, 

16 ‘‘(2) any individual who is a dependent of an17 other taxpayer for a taxable year beginning in the 

18 calendar year in which the individual’s taxable year 

19 begins, and 

20 ‘‘(3) an estate or trust. 

21 ‘‘(d) DEFINITIONS AND SPECIAL RULES.— 

22 ‘‘(1) DEPENDENT DEFINED.—For purposes of 

23 this section, the term ‘dependent’ has the meaning 

24 given such term by section 152. 


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1 ‘‘(2) IDENTIFICATION NUMBER REQUIRE2 MENT.— 

3 ‘‘(A) IN GENERAL.—In the case of a re4 turn other than a joint return, the energy price 

5 rebate amount in subsection (b)(1) shall be 

6 treated as being zero unless the taxpayer in7 cludes the valid identification number of the 

8 taxpayer on the return of tax for the taxable 

9 year. 

10 ‘‘(B) JOINT RETURNS.—In the case of a 

11 joint return, the energy price rebate amount in 

12 subsection (b)(1) shall be treated as being— 

13 ‘‘(i) 50 percent of the amount other14 wise determined without regard to this 

15 paragraph if the valid identification num16 ber of only 1 spouse is included on the re17 turn of tax for the taxable year, and 

18 ‘‘(ii) zero if the valid identification 

19 number of neither spouse is so included. 

20 ‘‘(C) VALID IDENTIFICATION NUMBER.— 

21 For purposes of this paragraph, the term ‘valid 

22 identification number’ means a social security 

23 number issued to an individual by the Social 

24 Security Administration on or before the due 

25 date for filing the return for the taxable year. 


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1 ‘‘(D) SPECIAL RULE FOR MEMBERS OF

2 THE ARMED FORCES.—Subparagraph (B) shall 

3 not apply in the case where at least 1 spouse 

4 was a member of the Armed Forces of the 

5 United States at any time during the taxable 

6 year and the valid identification number of at 

7 least 1 spouse is included on the return of tax 

8 for the taxable year. 

9 ‘‘(E) COORDINATION WITH CERTAIN AD10 VANCE PAYMENTS.—In the case of any payment 

11 determined pursuant to subsection (f)(6), a 

12 valid identification number shall be treated for 

13 purposes of this paragraph as included on the 

14 taxpayer’s return of tax if such valid identifica15 tion number is available to the Secretary as de16 scribed in such subsection. 

17 ‘‘(F) MATHEMATICAL OR CLERICAL ERROR

18 AUTHORITY.—Any omission of a correct valid 

19 identification number required under this para20 graph shall be treated as a mathematical or 

21 clerical error for purposes of applying section 

22 6213(g)(2) to such omission. 

23 ‘‘(3) CREDIT TREATED AS REFUNDABLE.—The 

24 credit allowed by subsection (a) shall be treated as 


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1 allowed by subpart C of part IV of subchapter A of 

2 chapter 1. 

3 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF

4 CREDIT.— 

5 ‘‘(1) REDUCTION OF REFUNDABLE CREDIT.— 

6 The amount of the credit which would (but for this 

7 paragraph) be allowable under subsection (a) for any 

8 taxable year shall be reduced (but not below zero) by 

9 the aggregate refunds and credits made or allowed 

10 to the taxpayer (or, except as otherwise provided by 

11 the Secretary, any dependent of the taxpayer) under 

12 subsection (f) for such taxable year. Any failure to 

13 so reduce the credit shall be treated as arising out 

14 of a mathematical or clerical error and assessed ac15 cording to section 6213(b)(1). 

16 ‘‘(2) JOINT RETURNS.—Except as otherwise 

17 provided by the Secretary, in the case of a refund 

18 or credit made or allowed under subsection (f) with 

19 respect to a joint return, half of such refund or cred20 it shall be treated as having been made or allowed 

21 to each individual filing such return. 

22 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraphs (5) 

24 and (6), for any rebate taxable year, each individual 

25 who was an eligible individual for such individual’s 


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1 first taxable year beginning in 2020 shall be treated 

2 as having made a payment against the tax imposed 

3 by chapter 1 for such applicable taxable year in an 

4 amount equal to advance refund amount for such re5 bate taxable year. 

6 ‘‘(2) ADVANCE REFUND AMOUNT.— 

7 ‘‘(A) IN GENERAL.—For purposes of para8 graph (1), the advance refund amount is the 

9 amount that would have been allowed as a cred10 it under this section for such taxable year if 

11 this section (other than subsection (e) and this 

12 subsection) had applied to such taxable year. 

13 ‘‘(B) TREATMENT OF DECEASED INDIVID14 UALS.—For purposes of determining the ad15 vanced refund amount with respect to such tax16 able year— 

17 ‘‘(i) any individual who was deceased 

18 before January 1, 2022 shall be treated for 

19 purposes of applying subsection (d)(2) in 

20 the same manner as if the valid identifica21 tion number of such person was not in22 cluded on the return of tax for the applica23 ble taxable year (except that subparagraph 

24 (D) thereof shall not apply), and 


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1 ‘‘(ii) notwithstanding clause (i), in the 

2 case of a joint return with respect to which 

3 only 1 spouse is deceased before January 

4 1, 2022, such deceased spouse was a mem5 ber of the Armed Forces of the United 

6 States at any time during the applicable 

7 taxable year, and the valid identification 

8 number of such deceased spouse is in9 cluded on the return of tax for the applica10 ble taxable year, the valid identification 

11 number of 1 (and only 1) spouse shall be 

12 treated as included on the return of tax for 

13 the applicable taxable year for purposes of 

14 applying subsection (d)(2)(B) with respect 

15 to such joint return. 

16 ‘‘(3) TIMING AND MANNER OF PAYMENTS.— 

17 The Secretary shall, subject to the provisions of this 

18 title, refund or credit any overpayment attributable 

19 to this section and determined with respect to any 

20 month as rapidly as possible, consistent with a rapid 

21 effort to make payments attributable to such over22 payments electronically if appropriate. No refund or 

23 credit shall be made or allowed under this subsection 

24 after December 31, 2022. 


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1 ‘‘(4) NO INTEREST.—No interest shall be al2 lowed on any overpayment attributable to this sub3 section. 

4 ‘‘(5) APPLICATION TO INDIVIDUALS WHO HAVE

5 FILED A RETURN OF TAX FOR 2021.— 

6 ‘‘(A) APPLICATION TO 2021 RETURNS

7 FILED AT TIME OF INITIAL DETERMINATION.— 

8 If, at the time of any determination made pur9 suant to paragraph (3), the individual referred 

10 to in paragraph (1) has filed a return of tax for 

11 the individual’s first taxable year beginning in 

12 2021, paragraph (1) shall be applied with re13 spect to such individual by substituting ‘2021’ 

14 for ‘2020’. 

15 ‘‘(B) ADDITIONAL PAYMENT.— 

16 ‘‘(i) IN GENERAL.—In the case of any 

17 individual who files, before the additional 

18 payment determination date, a return of 

19 tax for such individual’s first taxable year 

20 beginning in 2021, the Secretary shall 

21 make a payment (in addition to any pay22 ment made under paragraph (1)) to such 

23 individual equal to the excess (if any) of— 

24 ‘‘(I) the amount which would be 

25 determined under paragraph (1) 


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1 (after the application of subparagraph 

2 (A)) by applying paragraph (1) as of 

3 the additional payment determination 

4 date, over 

5 ‘‘(II) the amount of any payment 

6 made with respect to such individual 

7 under paragraph (1). 

8 ‘‘(ii) ADDITIONAL PAYMENT DETER9 MINATION DATE.—The term ‘additional 

10 payment determination date’ means the 

11 earlier of— 

12 ‘‘(I) the date which is 90 days 

13 after the 2021 calendar year filing 

14 deadline, or 

15 ‘‘(II) September 1, 2022. 

16 ‘‘(6) APPLICATION TO CERTAIN INDIVIDUALS

17 WHO HAVE NOT FILED A RETURN OF TAX FOR 2020

18 OR 2021 AT THE TIME OF DETERMINATION.—In the 

19 case of any individual who, at the time of any deter20 mination made pursuant to paragraph (3), has filed 

21 a tax return for neither the year described in para22 graph (1) nor for the year described in paragraph 

23 (5)(A), the Secretary shall, consistent with rules 

24 similar to the rules of section 6428A(f)(5)(H)(i), 

25 apply paragraph (1) on the basis of information 


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1 available to the Secretary and shall, on the basis of 

2 such information, determine the advance refund 

3 amount with respect to such individual without re4 gard to subsection (d) unless the Secretary has rea5 son to know that such amount would otherwise be 

6 reduced by reason of such subsection. 

7 ‘‘(7) SPECIAL RULE RELATED TO TIME OF FIL8 ING RETURN.—Solely for purposes of this sub9 section, a return of tax shall not be treated as filed 

10 until such return has been processed by the Internal 

11 Revenue Service. 

12 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

13 such regulations or other guidance as may be necessary 

14 or appropriate to carry out the purposes of this section, 

15 including— 

16 ‘‘(1) regulations or other guidance providing 

17 taxpayers the opportunity to provide the Secretary 

18 information sufficient to allow the Secretary to make 

19 payments to such taxpayers under subsection (f) (in20 cluding the determination of the amount of such 

21 payment) if such information is not otherwise avail22 able to the Secretary, and 

23 ‘‘(2) regulations or other guidance to ensure to 

24 the maximum extent administratively practicable 

25 that, in determining the amount of any credit under 


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1 subsection (a) and any credit or refund under sub2 section (f), an individual is not taken into account 

3 more than once, including by different taxpayers and 

4 including by reason of a change in joint return sta5 tus or dependent status between the taxable year for 

6 which an advance refund amount is determined and 

7 the taxable year for which a credit under subsection 

8 (a) is determined. 

9 ‘‘(h) OUTREACH.—The Secretary shall carry out a 

10 robust and comprehensive outreach program to ensure 

11 that all taxpayers described in subsection (g)(1) learn of 

12 their eligibility for the advance refunds and credits under 

13 subsection (f); are advised of the opportunity to receive 

14 such advance refunds and credits as provided under sub15 section (g)(1); and are provided assistance in applying for 

16 such advance refunds and credits.’’. 

17 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

18 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

19 CODE TAX SYSTEMS.—The Secretary of the Treas20 ury shall pay to each possession of the United States 

21 which has a mirror code tax system amounts equal 

22 to the loss (if any) to that possession by reason of 

23 the amendments made by this section. Such 

24 amounts shall be determined by the Secretary of the 


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1 Treasury based on information provided by the gov2 ernment of the respective possession. 

3 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

4 Secretary of the Treasury shall pay to each posses5 sion of the United States which does not have a mir6 ror code tax system amounts estimated by the Sec7 retary of the Treasury as being equal to the aggre8 gate benefits (if any) that would have been provided 

9 to residents of such possession by reason of the 

10 amendments made by this section if a mirror code 

11 tax system had been in effect in such possession. 

12 The preceding sentence shall not apply unless the re13 spective possession has a plan, which has been ap14 proved by the Secretary of the Treasury, under 

15 which such possession will promptly distribute such 

16 payments to its residents. 

17 (3) INCLUSION OF ADMINISTRATIVE EX18 PENSES.—The Secretary of the Treasury shall pay 

19 to each possession of the United States to which the 

20 Secretary makes a payment under paragraph (1) or 

21 (2) an amount equal to the increase (if any) of the 

22 administrative expenses of such possession— 

23 (A) in the case of a possession described in 

24 paragraph (1), by reason of the amendments 

25 made by this section, and 


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1 (B) in the case of a possession described in 

2 paragraph (2), by reason of carrying out the 

3 plan described in such paragraph, or 

4 The amount described in subparagraph (A) shall be 

5 determined by the Secretary of the Treasury based 

6 on information provided by the government of the 

7 respective possession. 

8 (4) COORDINATION WITH CREDIT ALLOWED

9 AGAINST UNITED STATES INCOME TAXES.—No cred10 it shall be allowed against United States income 

11 taxes under section 6433 of the Internal Revenue 

12 Code of 1986 (as added by this section), nor shall 

13 any credit or refund be made or allowed under sub14 section (f) of such section, to any person— 

15 (A) to whom a credit is allowed against 

16 taxes imposed by the possession by reason of 

17 the amendments made by this section, or 

18 (B) who is eligible for a payment under a 

19 plan described in paragraph (2). 

20 (5) MIRROR CODE TAX SYSTEM.—For purposes 

21 of this subsection, the term ‘‘mirror code tax sys22 tem’’ means, with respect to any possession of the 

23 United States, the income tax system of such posses24 sion if the income tax liability of the residents of 

25 such possession under such system is determined by 


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1 reference to the income tax laws of the United 

2 States as if such possession were the United States. 

3 (6) TREATMENT OF PAYMENTS.—For purposes 

4 of section 1324 of title 31, United States Code, the 

5 payments under this subsection shall be treated in 

6 the same manner as a refund due from a credit pro7 vision referred to in subsection (b)(2) of such sec8 tion. 

9 (c) ADMINISTRATIVE PROVISIONS.— 

10 (1) DEFINITION OF DEFICIENCY.—Section 

11 6211(b)(4)(A) of the Internal Revenue Code of 1986 

12 is amended by striking ‘‘6428A, 6428B’’ and insert13 ing ‘‘6428A, 6428B, 6433,’’. 

14 (2) EXCEPTION FROM REDUCTION OR OFF15 SET.—Any refund payable by reason of section 

16 6433(f) of the Internal Revenue Code of 1986 (as 

17 added by this section), or any such refund payable 

18 by reason of subsection (b) of this section, shall not 

19 be— 

20 (A) subject to reduction or offset pursuant 

21 to subsection (c), (d), (e), or (f) of section 6402 

22 of the Internal Revenue Code of 1986 or any 

23 similar authority permitting offset, or 


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1 (B) reduced or offset by other assessed 

2 Federal taxes that would otherwise be subject 

3 to levy or collection. 

4 (3) ASSIGNMENT OF BENEFITS.— 

5 (A) IN GENERAL.—The right of any per6 son to any applicable payment shall not be 

7 transferable or assignable, at law or in equity, 

8 and no applicable payment shall be subject to, 

9 execution, levy, attachment, garnishment, or 

10 other legal process, or the operation of any 

11 bankruptcy or insolvency law. 

12 (B) ENCODING OF PAYMENTS.—In the 

13 case of an applicable payment described in sub14 paragraph (E)(iii)(I) that is paid electronically 

15 by direct deposit through the Automated Clear16 ing House (ACH) network, the Secretary of the 

17 Treasury (or the Secretary’s delegate) shall— 

18 (i) issue the payment using a unique 

19 identifier that is reasonably sufficient to 

20 allow a financial institution to identify the 

21 payment as an applicable payment, and 

22 (ii) further encode the payment pursu23 ant to the same specifications as required 

24 for a benefit payment defined in section 


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1 212.3 of title 31, Code of Federal Regula2 tions. 

3 (C) GARNISHMENT.— 

4 (i) ENCODED PAYMENTS.—In the case 

5 of a garnishment order that applies to an 

6 account that has received an applicable 

7 payment that is encoded as provided in 

8 subparagraph (B), a financial institution 

9 shall follow the requirements and proce10 dures set forth in part 212 of title 31, 

11 Code of Federal Regulations, except— 

12 (I) notwithstanding section 212.4 

13 of title 31, Code of Federal Regula14 tions (and except as provided in sub15 clause (II)), a financial institution 

16 shall not fail to follow the procedures 

17 of sections 212.5 and 212.6 of such 

18 title with respect to a garnishment 

19 order merely because such order has 

20 attached, or includes, a notice of right 

21 to garnish federal benefits issued by a 

22 State child support enforcement agen23 cy, and 

24 (II) a financial institution shall 

25 not, with regard to any applicable 


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1 payment, be required to provide the 

2 notice referenced in sections 212.6 

3 and 212.7 of title 31, Code of Federal 

4 Regulations. 

5 (ii) OTHER PAYMENTS.—In the case 

6 of a garnishment order (other than an 

7 order that has been served by the United 

8 States) that has been received by a finan9 cial institution and that applies to an ac10 count into which an applicable payment 

11 that has not been encoded as provided in 

12 subparagraph (B) has been deposited elec13 tronically on any date during the lookback 

14 period or into which an applicable payment 

15 that has been deposited by check on any 

16 date in the lookback period, the financial 

17 institution, upon the request of the account 

18 holder, shall treat the amount of the funds 

19 in the account at the time of the request, 

20 up to the amount of the applicable pay21 ment (in addition to any amounts other22 wise protected under part 212 of title 31, 

23 Code of Federal Regulations), as exempt 

24 from a garnishment order without requir25 ing the consent of the party serving the 


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1 garnishment order or the judgment cred2 itor. 

3 (iii) LIABILITY.—A financial institu4 tion that acts in good faith in reliance on 

5 clauses (i) or (ii) shall not be subject to li6 ability or regulatory action under any Fed7 eral or State law, regulation, court or other 

8 order, or regulatory interpretation for ac9 tions concerning any applicable payments. 

10 (D) NO RECLAMATION RIGHTS.—This 

11 paragraph shall not alter the status of applica12 ble payments as tax refunds or other nonbenefit 

13 payments for purpose of any reclamation rights 

14 of the Department of the Treasury or the Inter15 nal Revenue Service as per part 210 of title 31, 

16 Code of Federal Regulations. 

17 (E) DEFINITIONS.—For purposes of this 

18 paragraph— 

19 (i) ACCOUNT HOLDER.—The term 

20 ‘‘account holder’’ means a natural person 

21 whose name appears in a financial institu22 tion’s records as the direct or beneficial 

23 owner of an account. 

24 (ii) ACCOUNT REVIEW.—The term 

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1 amining deposits in an account to deter2 mine if an applicable payment has been de3 posited into the account during the 

4 lookback period. The financial institution 

5 shall perform the account review following 

6 the procedures outlined in section 212.5 of 

7 title 31, Code of Federal Regulations and 

8 in accordance with the requirements of sec9 tion 212.6 of title 31, Code of Federal 

10 Regulations. 

11 (iii) APPLICABLE PAYMENT.—The 

12 term ‘‘applicable payment’’ means— 

13 (I) any payment made to an indi14 vidual under this section (other than 

15 any payment made pursuant to para16 graph (5)), 

17 (II) any advance payment made 

18 by a possession of the United States 

19 with a mirror code tax system (as de20 fined in section 24(h)) pursuant to an 

21 election under paragraph (5)(B) 

22 which corresponds to a payment de23 scribed in subclause (I), and 

24 (III) any advance payment made 

25 by American Samoa pursuant to a 


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•HR 7099 IH

1 program for making such payments 

2 which is described in paragraph 

3 (5)(C)(ii). 

4 (iv) GARNISHMENT.—The term ‘‘gar5 nishment’’ means execution, levy, attach6 ment, garnishment, or other legal process. 

7 (v) GARNISHMENT ORDER.—The term 

8 ‘‘garnishment order’’ means a writ, order, 

9 notice, summons, judgment, levy, or simi10 lar written instruction issued by a court, a 

11 State or State agency, a municipality or 

12 municipal corporation, or a State child 

13 support enforcement agency, including a 

14 lien arising by operation of law for overdue 

15 child support or an order to freeze the as16 sets in an account, to effect a garnishment 

17 against a debtor. 

18 (vi) LOOKBACK PERIOD.—The term 

19 ‘‘lookback period’’ means the two-month 

20 period that begins on the date preceding 

21 the date of account review and ends on the 

22 corresponding date of the month two 

23 months earlier, or on the last date of the 

24 month two months earlier if the cor25 responding date does not exist. 


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•HR 7099 IH

1 (4) CONFORMING AMENDMENTS.— 

2 (A) Paragraph (2) of section 1324(b) of 

3 title 31, United States Code, is amended by in4 serting ‘‘6433,’’ after ‘‘6431,’’. 

5 (B) The table of sections for subchapter B 

6 of chapter 65 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the fol8 lowing new item: 

‘‘Sec. 6433. Energy price rebates.’’. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS