S. 931Senate117th 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 child sex abuse 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 tax law so that people who are in prison for child sex offenses cannot receive the 2021 recovery rebate (the stimulus credit) and any money that would have gone to them is sent to the Department of Justice to be used as restitution for crime victims. It affects incarcerated individuals convicted of child sex abuse and the victims of those crimes.

Key Provisions

  • Disallows the 2021 recovery rebate for anyone confined for a sex offense involving a minor (excluding child‑pornography offenses) or confined due to insanity or incompetence related to such an offense.
  • If a married couple files a joint return and one spouse is in the disallowed category, the credit amount is reduced from $2,800 to $1,400.
  • Prohibits any advance refund or credit for those individuals once the Treasury knows they fall under the disallowed categories.
  • Transfers the amount saved by these disallowances to the Crime Victims Fund for use in victim restitution.
  • Makes the changes effective as if they were part of the American Rescue Plan Act of 2021.

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. 931 on the floor

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

Mr. President, there is an old saying that you don't learn anything from the second kick of a mule. The first time the Senator from Oregon said that I sought to disrupt stimulus payments, perhaps he…

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

Reserving the right to object, Mr. President. Mr. President, once again, our colleague from Texas is offering an idea that would disrupt the system in a way that would keep millions and millions of…

Bill Text

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Introduced in SenateIssued March 23, 2021

II

117th CONGRESS

1st Session

S. 931

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 child sex abuse 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 sex offense involving a minor (other than an offense involving child pornography) 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 sex offense involving a minor (other than an offense involving child pornography) 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).