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 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.928 | Sponsor: Sen. Cruz, Ted (R-TX)
Policy area: Taxation

Summary:
This bill prohibits payment of 2021 recovery rebates to prisoners, certain other inmates of publicly funded institutions, fugitives, probationers, and parolees. The bill requires that such rebates be paid instead to the Crime Victims Fund for the compensation of crime victims.

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 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 
              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 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, described in clause (i), (ii), 
                (iii), (iv), or (v) of section 202(x)(1)(A) of the 
                Social Security Act (42 U.S.C. 402(x)(1)(A)).
                    ``(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), (ii), (iii), (iv), 
        or (v) of section 202(x)(1)(A) of the Social Security Act.''.
    (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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