Title: Stop EITC and CTC Seizures Act
Policy area: Taxation

Summary:
Stop EITC and CTC Seizures Act
This bill prohibits the Department of the Treasury from reducing a taxpayer's tax refund for student loan debt to the extent that such reduction would cause the refund to be less than the sum of the earned income tax credit and the child tax credit.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3247 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 3247

  To amend title 31, United States Code, to limit the amount that the 
portion of a taxpayer's tax refund attributable to the child tax credit 
 and the earned income tax credit may be reduced by reason of student 
                               loan debt.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2021

Ms. Garcia of Texas (for herself, Ms. Norton, Ms. Escobar, Ms. Jayapal, 
   Ms. Bonamici, Ms. Omar, Mr. Grijalva, Ms. Lee of California, Ms. 
   Newman, Ms. Schakowsky, Mr. Larson of Connecticut, Mr. Garcia of 
Illinois, Ms. Tlaib, Mr. Espaillat, Ms. Wilson of Florida, Mr. Carson, 
   Ms. Pressley, Ms. Velazquez, Mrs. Watson Coleman, Mr. Khanna, Ms. 
Ocasio-Cortez, Mr. McGovern, Mr. Evans, Mr. Vicente Gonzalez of Texas, 
     Ms. Roybal-Allard, Mr. Bowman, Ms. Bass, and Ms. Jackson Lee) 
 introduced the following bill; which was referred to the Committee on 
  Oversight and Reform, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend title 31, United States Code, to limit the amount that the 
portion of a taxpayer's tax refund attributable to the child tax credit 
 and the earned income tax credit may be reduced by reason of student 
                               loan debt.

    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 ``Stop EITC and CTC Seizures Act''.

SEC. 2. LIMITATION ON REDUCTION OF CERTAIN PORTIONS OF TAX REFUND BY 
              AMOUNT OF STUDENT LOAN DEBT.

    (a) In General.--Section 3720A of title 31, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) The Secretary of the Treasury may not reduce under subsection 
(c), by reason of student loan debt, a refund of Federal taxes paid 
that is payable to a taxpayer to the extent such reduction would cause 
such refund to be less than the sum of credits allowed under subpart C 
of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 by reason of sections 24 and 32 of such Code. For purposes of the 
previous sentence, the Secretary of the Treasury shall determine the 
amount of the reduction under subsection (c) that is by reason of 
student loan debt and the amount of the refund that is being reduced 
after applying all other reductions under such subsection.''.
    (b) Conforming Amendment.--Section 6402(d)(1) of the Internal 
Revenue Code of 1986 is amended by inserting ``and subject to the 
limitations with respect to student loan debt under section 3720A of 
title 31, United States Code'' before ``) to such agency''.
    (c) Effective Date.--The amendments made by this section shall 
apply to refunds of Federal taxes paid for taxable years beginning 
after December 31, 2020.
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