1.This Act may be cited as the &short-title1;
.
2.Refund of certain budget surplus amounts
(a)Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to abatements, credits, and refunds) is amended by adding at the end the following new section:
6429.Refund of budget surplus amounts
(a)Each individual who was an eligible individual for such individual’s first taxable year beginning in the calendar year in which a surplus year begins shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the lesser of—
(1)the taxpayer’s allocable portion of the refund amount for such taxable year, or
(2)the taxpayer’s limitation amount for such taxable year.
(b)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.
(c)For purposes of this section—
(1)The term eligible individual means any individual other than—
(A)any estate or trust,
(B)any nonresident alien individual, and
(C)any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins.
(2)The term surplus year means a fiscal year for which the Director of the Office of Management and Budget certifies to the President and the Congress after the close of such year that there is a surplus in the budget of the United States for such fiscal year and the amount of such surplus, determined without regard to the income and expenditures of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund. Such term shall not include any year if the Secretary determines that the cost of carrying out this section with respect to such year would exceed the refund amount for such year.
(3)
(A)The term refund amount means with respect to a surplus year, the applicable percentage of the amount of the surplus certified under paragraph (2) for that year.
(B)The term applicable percentage
means such percentage as the Secretary may determine with respect to any surplus year, except that such percentage shall not be less than 50 percent nor more than 100 percent.
(4)Taxpayer’s allocable portion of the refund amountA taxpayer’s allocable portion of the refund amount is the portion of the refund amount determined by the Secretary to be the amount which bears the same ratio to the tax paid by the taxpayer under subtitle A for the taxpayer’s first taxable year beginning in the calendar year in which the surplus year begins as the total amount of taxes imposed under subtitle A on all eligible individuals for such taxable year bears to the total amount of the refund amount for the surplus year.
(5)The term limitation amount
means, with respect to any taxable year, the excess (if any) of—
(A)the sum of the regular tax liability (as defined in section 26(b)) for such taxable year plus the tax imposed by section 55 for such taxable year, over
(B)the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits) for such taxable year.
(d)
(1)No interest shall be allowed on any overpayment attributable to this section.
(2)In the case of a refund or credit made or allowed under this section with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return. .
(b)The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:
Sec. 6429. Refund of budget surplus amounts.
(c)The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.