S. 929Senate117th 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 convicted of murder 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 (part of the American Rescue Plan) so that people in prison for murder, or who are confined because of mental‑competence findings related to murder, cannot receive the rebate. Any money that would have gone to those inmates is instead sent to the Department of Justice to be used for victim restitution through the Crime Victims Fund. The change applies to individual and joint tax returns and takes effect as if it were part of the original 2021 law.

Key Provisions

  • Disallows the recovery rebate credit for anyone confined in a jail or prison for a murder conviction, or confined because of insanity, incompetence, or similar findings related to murder.
  • For joint tax returns where one spouse is ineligible, the rebate amount is reduced from $2,800 to $1,400.
  • Redirects the amount of rebates that are not paid out to these prisoners to the Crime Victims Fund for use in victim restitution.
  • Sets the amendment’s effective date to match the original 2021 American Rescue Plan provision.

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. 929 on the floor

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

Mr. President, I am going to suggest an even narrower situation. Perhaps we can't agree on victims of crime. How about murderers? We just had a hearing in the Senate Judiciary Committee on gun…

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

Reserving the right to object. Thank you very much. Mr. President, there isn't information about this crime or these crimes at the Federal, State, and local levels. So, again, we are back in exactly…

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 23, 2021

II

117th CONGRESS

1st Session

S. 929

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 convicted of murder 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 certain 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 certain 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—

(i)

confined in a jail, prison, or other penal institution or correctional facility pursuant to the conviction of the individual for a murder offense under Federal or State law; or

(ii)

is confined by court order in an institution at public expense in connection with—

(I)

a verdict or finding that the individual is guilty but insane, with respect to a murder offense under Federal or State law;

(II)

a verdict or finding that the individual is not guilty of such an offense by reason of insanity;

(III)

a finding that such individual is incompetent to stand trial under an allegation of such an offense; or

(IV)

a similar verdict or finding with respect to such an offense based on similar factors (such as a mental disease, a mental defect, or mental incompetence).

(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) or (ii) of paragraph (1)(A) of this subsection.

.

(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).