Title: Monthly Economic Crisis Support Act
Policy area: Taxation

Summary:
Monthly Economic Crisis Support Act
This bill provides for a monthly rebate to individuals and their dependents for the period beginning March 2020, and ending on the third month after the date on which the Department of Health and Human Services determines that the COVID-19 (i.e., coronavirus disease 2019) public health emergency has ended. The rebate is $2,000 per individual ($4,000 for individuals filing a joint tax return) plus $2,000 for each dependent of such individual, not exceeding three dependents. The rebate is reduced for individuals whose adjusted gross income exceeds specified levels. Rebates are not subject to garnishment or set offs by financial institutions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3784 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3784

 To amend the Internal Revenue Code of 1986 to provide monthly rebates 
 to every individual residing in the United States during the COVID-19 
                               pandemic.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2020

Ms. Harris (for herself, Mr. Sanders, Mr. Markey, and Mrs. Gillibrand) 
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 monthly rebates 
 to every individual residing in the United States during the COVID-19 
                               pandemic.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Monthly Economic Crisis Support 
Act''.

SEC. 2. MONTHLY REBATES TO INDIVIDUALS DURING CORONAVIRUS PANDEMIC.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by inserting after section 6428 the following 
new section:

``SEC. 6428A. MONTHLY REBATES TO INDIVIDUALS DURING CORONAVIRUS 
              PANDEMIC.

    ``(a) In General.--
            ``(1) Determination of rebate amount.--
                    ``(A) In general.--On each applicable date, an 
                eligible individual shall be treated as having made a 
                payment against the tax imposed by chapter 1 for the 
                applicable taxable year in an amount equal to the sum 
                of--
                            ``(i) $2,000 ($4,000 in the case of 
                        eligible individuals filing a joint return), 
                        plus
                            ``(ii) an amount equal to the product of 
                        $2,000 multiplied by the number of dependents 
                        (as defined in section 152) of the taxpayer.
                    ``(B) Limitation with respect to dependents.--The 
                number of dependents of the taxpayer which may be taken 
                into account for purposes of subparagraph (A)(ii) shall 
                not exceed 3.
            ``(2) Limitation based on adjusted gross income.--The 
        amount determined under paragraph (1)(A) (determined without 
        regard to this paragraph) shall be reduced (but not below zero) 
        by 10 percent of so much of the taxpayer's adjusted gross 
        income as exceeds--
                    ``(A) $200,000 in the case of a joint return,
                    ``(B) $150,000 in the case of a head of household, 
                and
                    ``(C) $100,000 in the case of a taxpayer not 
                described in subparagraph (A) or (B).
    ``(b) Applicable Date.--For purposes of this section, the term 
`applicable date' means the first day of any month during the period--
            ``(1) beginning March 2020, and
            ``(2) ending on the third month beginning after the date on 
        which the Secretary of Health and Human Services determines 
        that the public health emergency declared by such Secretary 
        under section 319 of the Public Health Service Act (42 U.S.C. 
        247d) on January 31, 2020, with respect to COVID-19, has ended.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means any individual other than--
                    ``(A) any nonresident alien individual,
                    ``(B) any individual with respect to whom a 
                deduction under section 151 is allowable to another 
                taxpayer for an applicable taxable year beginning in 
                the calendar year in which the individual's taxable 
                year begins, and
                    ``(C) an estate or trust.
            ``(2) Applicable taxable year.--The term `applicable 
        taxable year' means the taxable year ending in the calendar 
        year preceding the date on which the payment under subsection 
        (a) is treated as made.
    ``(d) Other Rules.--
            ``(1) Timing and manner of payments.--
                    ``(A) Timing.--The Secretary shall, subject to the 
                provisions of this title, refund or credit any 
                overpayment attributable to this section as rapidly as 
                possible.
                    ``(B) Alternate information.--
                            ``(i) In general.--For purposes of 
                        disbursing refunds payable under this 
                        subsection to any eligible individual, if such 
                        individual has not, as of any applicable date, 
                        filed a tax return for the applicable taxable 
                        year, the Secretary shall--
                                    ``(I) use return information with 
                                respect to such individual for the 
                                taxable year preceding such applicable 
                                taxable year, or
                                    ``(II) in the case of an individual 
                                who has not filed a tax return for the 
                                applicable year or the taxable year 
                                described in subclause (I), use any 
                                applicable information provided by any 
                                relevant Federal and State agencies.
                            ``(ii) Coordination and notification.--
                                    ``(I) In general.--For purposes of 
                                clause (i)(II), the Secretary shall--
                                            ``(aa) coordinate with the 
                                        heads of relevant Federal and 
                                        State agencies to receive 
                                        applicable information with 
                                        respect to any individuals who 
                                        may be eligible to receive a 
                                        refund payment pursuant to this 
                                        section, and
                                            ``(bb) establish, in such 
                                        form and manner as is deemed 
                                        appropriate by the Secretary, 
                                        an alternative method of 
                                        reporting information necessary 
                                        to determine the amount of any 
                                        refund payments for which such 
                                        individuals may be eligible, 
                                        including methods specifically 
                                        designed to identify and 
                                        account for foster youth and 
                                        individuals experiencing 
                                        homelessness.
                    ``(C) Delivery of payments.--Notwithstanding any 
                other provision of law, the Secretary may certify and 
                disburse refunds payable under this subsection--
                            ``(i) electronically to any account to 
                        which the payee authorized, on or after January 
                        1, 2018, the delivery of a refund of taxes 
                        under this title or of a Federal payment (as 
                        defined in section 3332 of title 31, United 
                        States Code), or
                            ``(ii) through such other means as are 
                        determined appropriate by the Secretary, 
                        including through the use of stored value cards 
                        and online payment systems.
                    ``(D) Waiver of certain rules.--Notwithstanding 
                section 3325 of title 31, United States Code, or any 
                other provision of law, with respect to any payment of 
                a refund under this subsection, a disbursing official 
                in the executive branch of the United States Government 
                may modify payment information received from an officer 
                or employee described in section 3325(a)(1)(B) of such 
                title for the purpose of facilitating the accurate and 
                efficient delivery of such payment. Except in cases of 
                fraud or reckless neglect, no liability under sections 
                3325, 3527, 3528, or 3529 of title 31, United States 
                Code, shall be imposed with respect to payments made 
                under this subparagraph.
            ``(2) Reduction of initial payment.--With respect to the 
        initial payment of a refund to a taxpayer which is made under 
        this subsection, such payment shall be reduced (but not below 
        zero) by the amount of any refund or credit made or allowed to 
        such taxpayer pursuant to subsection (f) of section 6428.
            ``(3) No interest.--No interest shall be allowed on any 
        overpayment attributable to a payment deemed made under this 
        section.
            ``(4) Notice to taxpayer.--Not later than 15 days after the 
        date on which the Secretary distributed any payment to a 
        taxpayer pursuant to this section, notice shall be sent by mail 
        to such taxpayer's last known address. Such notice shall 
        indicate the method by which such payment was made, the amount 
        of such payment, and a phone number for the appropriate point 
        of contact at the Internal Revenue Service to report any 
        failure to receive such payment.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary to carry out the purposes of this 
section, including any such measures as are deemed appropriate to avoid 
allowing multiple payments to a taxpayer.''.
    (b) Additional Rules.--
            (1) Treatment of possessions.--Rules similar to the rules 
        of subsection (c) of section 2201 of the CARES Act (Public Law 
        116-136) shall apply for purposes of section 6428A of such Code 
        (as added by subsection (a)).
            (2) Exception from reduction or offset.--Any credit or 
        refund allowed or made to any individual by reason of section 
        6428A of the Internal Revenue Code of 1986 (as added by 
        subsection (a)) or by reason of paragraph (1) of this 
        subsection shall not be--
                    (A) subject to reduction or offset pursuant to 
                section 3716 or 3720A of title 31, United States Code;
                    (B) subject to reduction or offset pursuant to 
                subsection (c), (d), (e), or (f) of section 6402 of the 
                Internal Revenue Code of 1986; or
                    (C) reduced or offset by other assessed Federal 
                taxes that would otherwise be subject to levy or 
                collection.
            (3) Public awareness campaign.--Rules similar to the rules 
        of subsection (e) of section 2201 of the CARES Act shall apply 
        for purposes of section 6428A of such Code (as added by 
        subsection (a)).
            (4) Prohibition on garnishment.--
                    (A) Definitions.--In this paragraph, the terms 
                ``financial institution'', ``freeze'', ``garnish'', and 
                ``garnishment order'' have the meanings given the terms 
                in section 212.3 of title 31, Code of Federal 
                Regulations, as in effect on the date of enactment of 
                this Act.
                    (B) Prohibition.--No financial institution may 
                garnish or freeze any portion of a refund made to any 
                debtor by reason of section 6428A of the Internal 
                Revenue Code of 1986 (as added by subsection (a)) or by 
                reason of paragraph (1) pursuant to a garnishment 
                order.
    (c) Appropriations To Carry Out Rebates.--Immediately upon the 
enactment of this Act, out of any money in the Treasury not otherwise 
appropriated, there shall be appropriated $250,000,000 to the 
Department of the Treasury to carry out the purposes of this section 
and section 6428A of the Internal Revenue Code of 1986, to remain 
available until expended.
    (d) Waiver of Fees by Insured Depository Institutions.--No insured 
depository institution, as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813), may impose a fee on a person for 
cashing any check for a refund payable under section 6428A of the 
Internal Revenue Code of 1986 (as added by subsection (a)) or 
subsection (b)(1).
    (e) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by striking ``and 6428'' and inserting ``6428, 
        and 6428A''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``6428A,'' after 
        ``6428,''.
            (3) The table of sections for subchapter B of chapter 65 of 
        subtitle F of the Internal Revenue Code of 1986 is amended by 
        inserting after the item relating to section 6428 the 
        following:

``Sec. 6428A. Monthly rebates to individuals during coronavirus 
                            pandemic.''.
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