Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Wrongful Convictions Tax Relief Act
of 2007''.

SEC. 2. EXCLUSION FOR WRONGFULLY INCARCERATED INDIVIDUALS.

(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139A the following new section:

''SEC. 139B. CERTAIN AMOUNTS RECEIVED BY WRONGFULLY INCARCERATED
INDIVIDUALS.

''(a) Exclusion From Gross Income.--Gross income shall not
include--
''(1) in the case of any wrongfully incarcerated
individual, any civil damages, restitution, or other monetary
award (including compensatory or statutory damages and
restitution imposed in a criminal matter) relating to the
incarceration of such individual for the covered offense for
which such individual was convicted, and
''(2) in the case of a qualified wrongfully incarcerated
individual, the first $50,000 ($75,000 in the case of a joint
return) of income received by such individual in any taxable
year beginning after December 31, 2007.
''(b) Limitation Relating to Income Exclusion.--
''(1) In general.--The exclusion under subsection (a)(2)
shall not apply to any qualified wrongfully incarcerated
individual in any taxable year if an exclusion has been allowed
for such individual under this section for the number of
preceding taxable years equal to the lesser of--
''(A) 15 years, or
''(B) the number of years during which the
qualified wrongfully incarcerated individual served a
sentence of imprisonment for the covered offense for
which such individual was convicted.
''(2) Rounding.--For purposes of paragraph (1)(B), if the
number of years for which a qualified wrongfully incarcerated
individual served a sentence of imprisonment is not a multiple
of 1, the number of years shall be rounded to the next lowest
multiple of 1.
''(c) Wrongfully Incarcerated Individual.--For purposes of this
section--
''(1) In general.--The term 'wrongfully incarcerated
individual' means an individual--
''(A) who was convicted of a covered offense,
''(B) who served all or part of a sentence of
imprisonment relating to that covered offense, and
''(C)(i) who was pardoned, granted clemency, or
granted amnesty for that covered offense because that
individual was innocent of that covered offense, or
''(ii)(I) for whom the judgment of conviction for
that covered offense was reversed or vacated, and
''(II) for whom the indictment, information, or
other accusatory instrument for that covered offense
was dismissed or who was found not guilty at a new
trial after the judgment of conviction for that covered
offense was reversed or vacated.
''(2) Covered offense.--The term 'covered offense' means
any criminal offense under Federal or State law, and includes
any criminal offense arising from the same course of conduct as
that criminal offense.
''(d) Qualified Wrongfully Incarcerated Individual.--For purposes
of this section, the term 'qualified wrongfully incarcerated
individual' means a wrongfully incarcerated individual who, except for
the covered offense described in subsection (c)(1)(A), has never been
convicted of a criminal offense under Federal or State law that is
punishable by more than 1 year imprisonment.''.
(b) Conforming Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 139A the
following new item:

''Sec. 139B. Certain amounts received by wrongfully incarcerated
individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning before, on, or after the date of the
enactment of this Act.

SEC. 3. REFUNDABLE CREDIT FOR EMPLOYMENT TAXES PAID BY WRONGFULLY
INCARCERATED INDIVIDUALS.

(a) Allowance of Refundable Credit.--Subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
(relating to refundable credits) is amended by redesignating section 36
as section 37 and by inserting after section 35 the following new
section:

''SEC. 36. EMPLOYMENT TAXES OF WRONGFULLY INCARCERATED INDIVIDUALS.

''(a) In General.--In the case of a qualified wrongfully
incarcerated individual, there shall be allowed as a credit against the
tax imposed by this subtitle for the taxable year an amount equal to
the sum of--
''(1) 50 percent of the taxes imposed on the self-
employment income of such individual under subsections (a) and
(b) of section 1401 during the taxable year, plus
''(2) the taxes imposed on the wages received by such
individual with respect to employment under subsections (a) and
(b) of section 3101 during the taxable year.
''(b) Limitations.--
''(1) Dollar limitation.--The total amount of wages and
self-employment income taken into account under subsection (a)
with respect to any individual shall not exceed $50,000.
''(2) Taxable year limitation.--
''(A) In general.--The credit under subsection (a)
shall not be allowed with respect to any qualified
wrongfully incarcerated individual in any taxable year
if a credit has been allowed to such individual under
this section for the number of preceding taxable years
equal to the lesser of--
''(i) 15 years, or
''(ii) the number of years during which the
qualified wrongfully incarcerated individual
served a sentence of imprisonment for the
covered offense for which such individual was
convicted.
''(B) Rounding.--For purposes of subparagraph
(A)(ii), if the number of years for which a qualified
wrongfully incarcerated individual served a sentence of
imprisonment is not a multiple of 1, the number of
years shall be rounded to the next lowest multiple of
1.
''(c) Qualified Wrongfully Incarcerated Individual.--For purposes
of this section, the term 'qualified wrongfully incarcerated
individual' has the meaning given to such term under section
139B(d).''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting before the period at the end '', or
enacted by the Wrongful Convictions Tax Relief Act of 2007''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by striking the item relating to section 36 and
inserting the following:

''Sec. 36. Employment taxes of wrongfully incarcerated individuals.
''Sec. 37. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.

SEC. 4. REPORTING WITH RESPECT TO WRONGFULLY INCARCERATED INDIVIDUALS.

(a) Federal Courts.--
(1) In general.--The Director of the Administrative Office
of United States Courts shall report annually to the Secretary
of the Treasury such information with respect to individuals
described in paragraph (2) as the Secretary of the Treasury, in
consultation with the Administrator, determines is necessary
for the administration of sections 36 and 139B of the Internal
Revenue Code of 1986.
(2) Individuals described.--An individual is described in
this paragraph if such individual is a wrongfully incarcerated
individual (as defined under section 139B of the Internal
Revenue Code of 1986)--
(A) for whom the judgment of conviction for that
covered offense was reversed or vacated; and
(B) for whom the indictment, information, or other
accusatory instrument for that covered offense was
dismissed or who was found not guilty at a new trial
after the judgment of conviction for that covered
offense was reversed or vacated.
(b) Agreements With States.--The Secretary of the Treasury shall
enter into agreements with States under which a State will report to
the Secretary not less frequently than annually such information with
respect to wrongfully incarcerated individuals (as defined under
section 139B of the Internal Revenue Code of 1986) as the Secretary
determines is necessary for the administration of sections 36 and 139B
of the Internal Revenue Code of 1986.
Output:
Wrongful Convictions Tax Relief Act of 2007 - Amends the Internal Revenue Code to allow wrongfully incarcerated individuals: (1) an exclusion from gross income for compensation received relating to their incarceration and for the first $50,000 of annual income received by such an individual after release from incarceration; and (2) a refundable tax credit for 50% of payroll taxes on employment and self-employment income, up to $50,000 of such income. Limits the duration of such tax benefits to the lesser of 15 years or the number of years such an individual was incarcerated.

Defines "wrongfully incarcerated individual" as an individual who was convicted of a criminal offense and was then pardoned or found not guilty of such offense because of innocence after serving all or a portion of a prison term. Disqualifies individuals with prior convictions punishable by more than one year of imprisonment.

Requires: (1) the Director of the Administrative Office of the U.S. Courts to report annually to the Secretary of the Treasury on individuals who are wrongfully incarcerated and whose criminal convictions are reversed or vacated; and (2) states to report annually to the Secretary on wrongfully incarcerated individuals.