S. 928Senate117th Congress (2021-2023)In Committee

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.

Sponsored by Ted CruzSen. Ted Cruz (R-TX)
Introduced March 23, 2021

AI-Generated Summary

Updated February 8, 2026 at 12:51 AM UTC

The bill changes the 2021 recovery rebate program so that people who are in prison during 2021 cannot receive the tax credit or advance refund. Any money that would have gone to incarcerated individuals is instead sent to the Crime Victims Fund for use in victim restitution. This affects incarcerated taxpayers, their spouses filing joint returns, and crime victims who may receive the redirected funds.

Key Provisions

  • Prohibits the 2021 recovery rebate credit and advance refund for anyone described as a prisoner under the Social Security Act for each day in 2021.
  • If a married couple files jointly and one spouse is a prisoner, the credit amount is reduced from $2,800 to $1,400.
  • Transfers the amount not paid to prisoners into the Crime Victims Fund, using Treasury money not otherwise obligated.
  • Allows the transferred funds to be used for the same purposes as other amounts in the Crime Victims Fund, supporting restitution to crime victims.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

March 23, 2021

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SenateIntro Referral

Introduced in Senate

March 23, 2021

SenateIntro Referral

Read twice and referred to the Committee on Finance.

March 23, 2021

Floor Debate

2 members

What members said about S. 928 on the floor

1 Republican1 Democrat
Ted Cruz
Sen. Ted CruzR-TX · Mar 23, 2021

Mr. President, in a moment, I am going to propound a unanimous consent request. But before I do so, I want to make some brief observations. Earlier this month, Democrats passed their extreme partisan…

Ron Wyden
Sen. Ron WydenD-OR · Mar 23, 2021

Reserving the right to object. Mr. President, just two quick points. First, this is not really about prisoners. This is about disrupting payments to families all across the country who need the money…

Bill Text

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Introduced in SenateIssued March 23, 2021

II

117th CONGRESS

1st Session

S. 928

IN THE SENATE OF THE UNITED STATES

March 23, 2021

Mr. Cruz 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 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.

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).