A bill to amend the Internal Revenue Code of 1986 to ensure that the 2021 recovery rebates as provided for in the American Rescue Plan Act are not provided to prison inmates convicted of child sex abuse and that such sums shall be redirected to the Department of Justice to be paid out in the form of restitution to compensate victims of crime.
Bill: S.931 | Sponsor: Sen. Cruz, Ted (R-TX)
Policy area: Taxation

Summary:
This bill prohibits the payment of 2021 recovery rebates to prisoners convicted or confined for a sex offense involving a minor child under federal or state law. The bill requires such rebates to be paid to the Crime Victims Fund to compensate victims of crimes.

To amend the Internal Revenue Code of 1986 to ensure that the 2021 
 recovery rebates as provided for in the American Rescue Plan Act are 
 not provided to prison inmates convicted of child sex abuse and that 
 such sums shall be redirected to the Department of Justice to be paid 
     out in the form of restitution to compensate victims of crime.

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

SECTION 1. PROHIBITING 2021 RECOVERY REBATES FROM BEING PROVIDED TO 
              CERTAIN PRISONERS.

    (a) In General.--Section 6428B of the Internal Revenue Code of 
1986, as added by section 9601 of the American Rescue Plan Act of 2021, 
is amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively;
            (2) in subsection (j), as so redesignated, by striking 
        ``subsection (h)(1)'' each place it appears and inserting 
        ``subsection (i)(1)''; and
            (3) by inserting after subsection (g) the following:
    ``(h) Special Rules With Respect to Certain Prisoners.--
            ``(1) Disallowance of credit.--
                    ``(A) In general.--Subject to subparagraph (B), no 
                credit shall be allowed under subsection (a) to an 
                eligible individual who is, for each day during 
                calendar year 2021--
                            ``(i) confined in a jail, prison, or other 
                        penal institution or correctional facility 
                        pursuant to the conviction of the individual 
                        for a sex offense involving a minor (other than 
                        an offense involving child pornography) under 
                        Federal or State law; or
                            ``(ii) is confined by court order in an 
                        institution at public expense in connection 
                        with--
                                    ``(I) a verdict or finding that the 
                                individual is guilty but insane, with 
                                respect to a sex offense involving a 
                                minor (other than an offense involving 
                                child pornography) under Federal or 
                                State law;
                                    ``(II) a verdict or finding that 
                                the individual is not guilty of such an 
                                offense by reason of insanity;
                                    ``(III) a finding that such 
                                individual is incompetent to stand 
                                trial under an allegation of such an 
                                offense; or
                                    ``(IV) a similar verdict or finding 
                                with respect to such an offense based 
                                on similar factors (such as a mental 
                                disease, a mental defect, or mental 
                                incompetence).
                    ``(B) Joint return.--In the case of eligible 
                individuals filing a joint return where 1 spouse is 
                described in subparagraph (A), subsection (b)(1) shall 
                be applied by substituting `$1,400' for `$2,800'.
            ``(2) Denial of advance refund or credit.--No refund or 
        credit shall be made or allowed under subsection (g) with 
        respect to any individual whom the Secretary has knowledge is, 
        at the time of any determination made pursuant to paragraph (3) 
        of such subsection, described in clause (i) or (ii) of 
        paragraph (1)(A) of this subsection.''.
    (b) Crime Victims Fund.--
            (1) In general.--There are transferred to the Crime Victims 
        Fund, established under section 1402 of the Victims of Crime 
        Act of 1984 (34 U.S.C. 20101), out of any money in the Treasury 
        not otherwise obligated, an amount equal to the total reduction 
        in outlays by reason of the amendment made by subsection (a).
            (2) Use of funds.--Any amount transferred to the Crime 
        Victims Fund under paragraph (1) shall be merged with and be 
        available for the same purposes as amounts deposited in the 
        Crime Victims Fund under section 1402(b) of the Victims of 
        Crime Act of 1984 (34 U.S.C. 20101(b)).
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 9601 of the 
American Rescue Plan Act of 2021 (Public Law 117-2).
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