“A bill to amend the Internal Revenue Code of 1986 to provide rebates to individuals using tariff proceeds.”
No CRS summary available for this bill.
This section (1) designates the Act as the "Tariff Refunds for Working Families Act"; (2) declares it the policy of the United States to use revenues from unlawful tariffs on foreign imports—including those imposed under the International Emergency Economic Powers Act—to provide tax rebates for working people; and (3) expresses the sense of Congress that refunds authorized by the Act derive from such tariff revenues.
This section establishes a new refundable "working families refund" tax credit under new IRC §6428C for eligible individuals (i.e., U.S. residents who are not dependents of another taxpayer, estates, or trusts) in their first taxable year beginning in 2026 equal to $600 ($1,200 for joint returns) plus $600 per qualifying child (as defined in IRC §24(c)), phased out for taxpayers with adjusted gross income exceeding $90,000 ($120,000 for head of household; $180,000 for joint returns). The credit requires valid identification numbers for the taxpayer, spouse (if applicable), and qualifying children; is coordinated with advance refunds such that the 2026 credit is reduced by prior advance amounts received; and allows no interest on related overpayments. The section further directs advance refunds for eligible individuals' first taxable year beginning in 2025 (or 2024 if no 2025 return is filed), calculated as if the credit applied to that year, to be issued as rapidly as possible after enactment (using 2024 SSA-1099 or RRB-1099 data if needed) and no later than December 31, 2027, with mailed notices and special rules for electronic disbursement and waiver of certain payment certification requirements. This section also amends 31 U.S.C. §1324(b)(2) to authorize disbursements for refunds under new IRC §6428C from the existing permanent appropriation for refunding internal revenue collections. (Thus, no new funding is appropriated.)