Energy rebates to individuals

(a)

In general

Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6428B the following new section:

6428C.

Energy rebates to individuals

(a)

In general

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2022 the sum of the monthly specified energy rebates determined with respect to the taxpayer under subsection (b) for qualifying calendar months during such taxable year.(b)

Monthly specified energy rebates

(1)

In general

For purposes of this section, the term monthly specified energy rebate means, with respect to any taxpayer for any qualifying calendar month, the sum of— (A)$100 ($200 in the case of a joint return), plus(B)$100 multiplied by the number of dependents of the taxpayer during taxable year 2022.(2)

Limitation based on adjusted gross income

(A)

In general

The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 1/12 of the amount which bears the same ratio to such credit (as so determined) as—(i)the excess of—(I)the taxpayer’s modified adjusted gross income for such taxable year, over(II)$75,000, bears to(ii)$5,000.(B)

Special rules

(i)

Joint return or surviving spouse

In the case of a joint return or a surviving spouse (as defined in section 2(a)), subparagraph (A) shall be applied by substituting $150,000 for $75,000 and $10,000 for $5,000.(ii)

Head of household

In the case of a head of household (as defined in section 2(b)), subparagraph (A) shall be applied by substituting $112,500 for $75,000 and $7,500 for $5,000.(c)

Qualifying calendar month

For purposes of this section, the term qualifying calendar month means any month in 2022 during which the average price of gasoline in the United States is equal to or greater than $4 per gallon. (d)

Eligible individual

For purposes of this section, the term eligible individual means any individual other than—(1)any nonresident alien individual,(2)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, and(3)an estate or trust.(e)

Definitions and special rules

(1)

Dependent defined

For purposes of this section, the term dependent has the meaning given such term by section 152. (2)

Identification number requirement

(A)

In general

In the case of a return other than a joint return, the $100 amount in subsection (b)(1)(A) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.(B)

Joint returns

In the case of a joint return, the $200 amount in subsection (b)(1)(B) shall be treated as being—(i)$100 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and(ii)zero if the valid identification number of neither spouse is so included.(C)

Dependents

A dependent shall not be taken into account under subsection (b)(1)(B) unless the valid identification number of such dependent is included on the return of tax for the taxable year.(D)

Valid identification number

(i)

In general

For purposes of this paragraph, the term valid identification number means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year.(ii)

Adoption taxpayer identification number

For purposes of subparagraph (C), in the case of a dependent who is adopted or placed for adoption, the term valid identification number shall include the adoption taxpayer identification number of such dependent.(E)

Special rule for members of the Armed Forces

Subparagraph (B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year.(F)

Coordination with certain advance payments

In the case of any payment made pursuant to subsection (g)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer’s return of tax if such valid identification number is provided pursuant to such subsection.(G)

Mathematical or clerical error authority

Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.(3)

Credit treated as refundable

The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.(f)

Coordination with advance refunds of credit

(1)

Reduction of refundable credit

The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or any dependent of the taxpayer) under subsection (g). 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

Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (g) 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.(g)

Advance refunds and credits

(1)

In general

Subject to paragraphs (5) and (6), each individual who was an eligible individual for such individual’s first taxable year beginning in 2020 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.(2)

Advance refund amount

(A)

In general

For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (f) and this subsection) had applied to such taxable year.(B)

Treatment of deceased individuals

For purposes of determining the advance refund amount with respect to such taxable year, any individual who was deceased before January 1, 2022, shall be treated for purposes of applying subsection (e)(3) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year and no amount shall be determined under subsection (e)(3) with respect to any dependent of the taxpayer if the taxpayer (both spouses in the case of a joint return) was deceased before January 1, 2022.(3)

Timing and manner of payments

(A)

Timing

The Secretary shall, subject to the provisions of this title and consistent with rules similar to the rules of subparagraphs (B) and (C) of section 6428A(f)(3), refund or credit any overpayment attributable to this subsection as rapidly as possible, consistent with a rapid effort to make payments attributable to such overpayments electronically if appropriate. No refund or credit shall be made or allowed under this subsection after December 31, 2022.(4)

No interest

No interest shall be allowed on any overpayment attributable to this subsection.(5)

Application to individuals who have filed a return of tax for 2021

(A)

Application to 2021 returns filed at time of initial determination

If, at the time of any determination made pursuant to paragraph (3), the individual referred to in paragraph (1) has filed a return of tax for the individual’s first taxable year beginning in 2021, paragraph (1) shall be applied with respect to such individual by substituting 2021 for 2020.(B)

Additional payment

(i)

In general

In the case of any individual who files, before the additional payment determination date, a return of tax for such individual's first taxable year beginning in 2021, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of—(I)the amount which would be determined under paragraph (1) (after the application of subparagraph (A)) by applying paragraph (1) as of the additional payment determination date, over (II)the amount of any payment made with respect to such individual under paragraph (1).(ii)

Additional payment determination date

The term additional payment determination date means the earlier of—(I)the date which is 90 days after the 2021 calendar year filing deadline, or (II)September 1, 2022.(iii)

2021 calendar year filing deadline

The term 2020 calendar year filing deadline means the date specified in section 6072(a) with respect to returns for calendar year 2021. Such date shall be determined after taking into account any period disregarded under section 7508A if such disregard applies to substantially all returns for calendar year 2021 to which section 6072(a) applies.(6)

Application to certain individuals who have not filed a return of tax for 2020 or 2021 at time of determination

In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the year described in paragraph (1) nor for the year described in paragraph (5)(A), the Secretary shall, consistent with rules similar to the rules of section 6428A(f)(5)(H)(i), apply paragraph (1) on the basis of information available to the Secretary and shall, on the basis of such information, determine the advance refund amount with respect to such individual without regard to subsection (d) unless the Secretary has reason to know that such amount would otherwise be reduced by reason of such subsection.(7)

Special rule related to time of filing return

Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service.(h)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including—(1)regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (g) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and(2)regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined.(i)

Outreach

The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (h)(1) learn of their eligibility for the advance refunds and credits under subsection (g), are advised of the opportunity to receive such advance refunds and credits as provided under subsection (h)(1), and are provided assistance in applying for such advance refunds and credits.

(b)

Treatment of certain possessions

(1)

Payments to possessions with mirror code tax systems

The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.(2)

Payments to other possessions

The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.(3)

Coordination with credit allowed against united states income taxes

No credit shall be allowed against United States income taxes under section 6428C of the Internal Revenue Code of 1986 (as added by this section), nor shall any credit or refund be made or allowed under subsection (g) of such section, to any person—(A)to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or(B)who is eligible for a payment under a plan described in paragraph (2).(4)

Mirror code tax system

For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.(5)

Treatment of payments

For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section(c)

Administrative provisions

(1)

Definition of deficiency

Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking 6428, 6428A, and 6428B and inserting 6428, 6428A, 6428B, and 6428C. (2)

Mathematical or clerical error authority

Section 6213(g)(2) of such Code is amended—(A)by striking or section 6428A or 6428B (relating to additional recovery rebates to individuals) and inserting or section 6428A, 6428B, or 6428C, and(B)by striking 6428, 6428A, or 6428B and inserting 6428, 6428A, 6428B, or 6428C in subparagraph (L). (3)

Exception from reduction or offset

Any credit or refund allowed or made to any individual by reason of section 6428C of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be—(A)subject to reduction or offset pursuant to section 3716 or 3720A of title 31, United States Code, (B)subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986, or (C)reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.(4)

Assignment of benefits

(A)

In general

The right of any person to any applicable payment shall not be transferable or assignable, at law or in equity, and no applicable payment shall be subject to, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law.(B)

Encoding of payments

In the case of an applicable payment described in subparagraph (E)(iii)(I) that is paid electronically by direct deposit through the Automated Clearing House (ACH) network, the Secretary of the Treasury (or the Secretary's delegate) shall—(i)issue the payment using a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as an applicable payment, and(ii)further encode the payment pursuant to the same specifications as required for a benefit payment defined in section 212.3 of title 31, Code of Federal Regulations. (C)

Garnishment

(i)

Encoded payments

In the case of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph (B), a financial institution shall follow the requirements and procedures set forth in part 212 of title 31, Code of Federal Regulations, except—(I)notwithstanding section 212.4 of title 31, Code of Federal Regulations (and except as provided in subclause (II)), a financial institution shall not fail to follow the procedures of sections 212.5 and 212.6 of such title with respect to a garnishment order merely because such order has attached, or includes, a notice of right to garnish federal benefits issued by a State child support enforcement agency, and(II)a financial institution shall not, with regard to any applicable payment, be required to provide the notice referenced in sections 212.6 and 212.7 of title 31, Code of Federal Regulations.(ii)

Other payments

If a financial institution receives a garnishment order (other than an order that has been served by the United States), that has been received by a financial institution and that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph (B) has been deposited electronically or by an applicable payment that has been deposited by check on any date in the lookback period, the financial institution, upon the request of the account holder, shall treat the amount of the funds in the account at the time of the request, up to the amount of the applicable payment (in addition to any amounts otherwise protected under part 212 of title 31, Code of Federal Regulations), as exempt from a garnishment order without requiring the consent of the party serving the garnishment order or the judgment creditor. (iii)

Liability

A financial institution that acts in good faith in reliance on clause (i) or (ii) shall not be subject to liability or regulatory action under any Federal or State law, regulation, court or other order, or regulatory interpretation for actions concerning any applicable payments.(D)

Preservation of reclamation rights

This paragraph shall not alter the status of applicable payments as tax refunds or other nonbenefit payments for purpose of any reclamation rights of the Department of the Treasury or the Internal Revenue Service as per part 210 of title 31, Code of Federal Regulations.(E)

Definitions

For purposes of this paragraph—(i)

Account holder

The term account holder means a natural person whose name appears in a financial institution’s records as the direct or beneficial owner of an account. (ii)

Account review

The term account review means the process of examining deposits in an account to determine if an applicable payment has been deposited into the account during the lookback period. The financial institution shall perform the account review following the procedures outlined in section 212.5 of title 31, Code of Federal Regulations and in accordance with the requirements of section 212.6 of title 31, Code of Federal Regulations.(iii)

Applicable payment

The term applicable payment means—(I)any advance refund amount paid pursuant to section 6428C(g) of Internal Revenue Code of 1986 (as added by this section),(II)any payment made by a possession of the United States with a mirror code tax system (as defined in subsection (b) of this section) pursuant to such subsection which corresponds to a payment described in subclause (I), and(III)any payment made by a possession of the United States without a mirror code tax system (as so defined) pursuant to subsection (b) of this section.(iv)

Garnishment

The term garnishment means execution, levy, attachment, garnishment, or other legal process.(v)

Garnishment order

The term garnishment order means a writ, order, notice, summons, judgment, levy, or similar written instruction issued by a court, a State or State agency, a municipality or municipal corporation, or a State child support enforcement agency, including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account, to effect a garnishment against a debtor.(vi)

Lookback period

The term lookback period means the two month period that begins on the date preceding the date of account review and ends on the corresponding date of the month two months earlier, or on the last date of the month two months earlier if the corresponding date does not exist.(5)

Agency information sharing and assistance

(A)

In general

The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall each provide the Secretary of the Treasury (or the Secretary’s delegate) such information and assistance as the Secretary of the Treasury (or the Secretary’s delegate) may require for purposes of—(i)making payments under section 6428C(g) of the Internal Revenue Code of 1986 to individuals described in paragraph (6)(A) thereof, or(ii)providing administrative assistance to a possession of the United States (as defined in subsection (c)(3)(A)) to allow such possession to promptly distribute payments under subsection (c) to its residents.(B)

Exchange of information with possessions

Any information provided to the Secretary of the Treasury (or the Secretary’s delegate) pursuant to subparagraph (A)(ii) may be exchanged with a possession of the United States in accordance with the applicable tax coordination agreement for information exchange and administrative assistance that the Internal Revenue Service has agreed to with such possession.(6)

Conforming amendments

(A)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 6428C, after 6428B,.(B)The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6428B the following new item:

Sec. 6428C. Energy rebates to individuals.

(d)

Reports to Congress

Each week beginning after the date of the enactment of this Act and beginning before December 31, 2022, on Friday of such week, not later than 3 p.m. eastern time, the Secretary of the Treasury shall provide a written report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. Such report shall include the following information with respect to payments made pursuant to section 6428B of the Internal Revenue Code of 1986:(1)The number of scheduled payments sent to the Bureau of Fiscal Service for payment by direct deposit or paper check for the following week (stated separately for direct deposit and paper check).(2)The total dollar amount of the scheduled payments described in paragraph (1).(3)The number of direct deposit payments returned to the Department of the Treasury and the total dollar value of such payments, for the week ending on the day prior to the day on which the report is provided.(4)The total number of letters related to payments under section 6428C of such Code mailed to taxpayers during the week ending on the day prior to the day on which the report is provided.