Hurricane Katrina Fast-Track Refunds for Working Families Act of 2005 - Amends the Internal Revenue Code to allow an advance payment of the earned income tax credit and the child tax credit in 2005 for taxpayers in a Hurricane Katrina disaster area who received such credits for a taxable year ending in 2004.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1770 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1770
To amend the Internal Revenue Code of 1986 to provide for advance
payment of the earned income tax credit and the child tax credit for
2005 in order to provide needed funds to victims of Hurricane Katrina
and to stimulate local economies.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 26, 2005
Mr. Obama (for himself, Mrs. Murray, Mr. Corzine, Mr. Kerry, and Mr.
Levin) 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 provide for advance
payment of the earned income tax credit and the child tax credit for
2005 in order to provide needed funds to victims of Hurricane Katrina
and to stimulate local economies.
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 ``Hurricane Katrina Fast-Track Refunds
for Working Families Act of 2005''.
SEC. 2. FINDINGS.
(1) An estimated 1.3 million households were affected by
Hurricane Katrina, many of which were working families left
with no material belongings and minimal assets following the
storm.
(2) It will be difficult for these working families to
immediately find new employment opportunities and to restore
lost wages, thus depleting their resources for food, housing,
clothing, and other necessities.
(3) These working families can be expected to spend their
fast-tracked tax refunds on immediate necessities which will
stimulate local economic activity.
(4) These families have worked hard, earned their Child Tax
Credit and Earned Income Tax Credit refunds and should receive
them now rather than later.
SEC. 3. ADVANCE PAYMENT OF EARNED INCOME TAX CREDIT AND CHILD TAX
CREDIT FOR 2005 FOR VICTIMS OF HURRICANE KATRINA.
(a) In General.--Subchapter B of chapter 61 of the Internal Revenue
Code of 1986 (relating to rules of special application) is amended by
adding at the end the following new section:
``SEC. 6430. ADVANCE PAYMENT OF EARNED INCOME TAX CREDIT AND CHILD TAX
CREDIT FOR 2005 FOR VICTIMS OF HURRICANE KATRINA.
``(a) In General.--Each eligible taxpayer shall be treated as
having made a payment against the tax imposed by chapter 1 for the
taxpayer's last taxable year ending in 2004 in an amount equal to--
``(1) the child tax credit refund amount (if any) for such
taxable year, and
``(2) the earned income credit refund amount (if any) for
such taxable year.
``(b) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--The term `eligible taxpayer'
means any taxpayer--
``(A) who was allowed a credit under section 24
(relating to child tax credit) or section 32 (relating
to earned income credit) for the taxpayer's last
taxable year ending in 2004, and
``(B) whose address on such taxpayer's return for
such last taxable year was within an area determined by
the President to warrant individual or individual and
public assistance from the Federal Government under the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane Katrina.
``(2) Child tax credit refund amount.--The child tax credit
refund amount is the amount of the credit which would have been
allowed under section 24 for such last taxable year if only
qualifying children (as defined in section 24(c)) of the
taxpayer for such year who had not attained age 17 as of
December 31, 2005, were taken into account.
``(3) Earned income credit refund amount.--The earned
income credit refund amount is the amount of the credit which
would have been allowed under section 32 for such last taxable
year if--
``(A) the amount in section 32(b)(2)(B) were
$2,000, and
``(B) an individual is treated as meeting the age
requirements under section 32 only if such requirements
are met as of December 31, 2005.
``(c) Timing of Payments.--In the case of any overpayment
attributable to this section, the Secretary shall, subject to the
provisions of this title, refund or credit such overpayment as rapidly
as possible and shall ensure that adequate systems and delivery
mechanisms are in place for the prompt delivery of refunds to eligible
recepients.
``(d) Coordination With Credits.--
``(1) In general.--The amount of credit which would (but
for this subsection and section 26) be allowed under sections
24 and 32, as the case may be, for the taxpayer's first taxable
year beginning in 2005 shall be reduced (but not below zero) by
so much of the payment made to the taxpayer under this section
as is attributable to such section 24 or 32. Any failure to so
reduce the credit shall be treated as arising out of a
mathematical or clerical error and assessed according to
section 6213(b)(1).
``(2) Joint returns.--In the case of a payment under this
section with respect to a joint return, half of such payment
shall be treated as having been made to each individual filing
such return.
``(e) No Interest.--No interest shall be allowed on any overpayment
attributable to this section.''.
(b) Clerical Amendment.--The table of sections for such subchapter
B is amended by adding at the end the following new item:
``Sec. 6430. Advance payment of earned income tax credit and child tax
credit for 2005 for victims of Hurricane
Katrina.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S10435)
Read twice and referred to the Committee on Finance.
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