To amend the Internal Revenue Code of 1986 to treat certain amounts of tariff revenue as an overpayment of tax.

To amend the Internal Revenue Code of 1986 to treat certain amounts of tariff revenue as an overpayment of tax.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

SEC. 2. Tariff revenue rebate overpayment.

(a) In general.—Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

“(a) In general.—Each eligible individual shall be treated as having made a payment against the tax imposed by chapter 1 for the preceding taxable year of—

“(1) in the case of a joint return, $1,700,

“(2) in the case of a head of household, $1,275, or

“(3) in the case of any other individual, $850.

“(b) Preceding taxable year.—For purposes of this section, the term ‘preceding taxable year’ means, with respect to an eligible individual, the most recent taxable year of such individual which—

“(1) begins after December 31, 2024, and

“(2) ends before the date of the enactment of this section.

“(c) Eligible individual.—For purposes of this section, the term ‘eligible individual’ means any individual—

“(1) who is a citizen of the United States,

“(2) who is not incarcerated for a crime conviction in the United States on the date on which the Secretary determines such individual’s eligibility under this subsection,

“(3) whose adjusted gross income for the preceding taxable year did not exceed—

“(A) in the case of a joint return, $400,000,

“(B) in the case of a head of household, $300,000, or

“(C) in the case of any other individual, $200,000, and

“(4) other than—

“(A) an individual who is a dependent of another taxpayer for the taxable year of such individual which follows the preceding taxable year, and

“(B) an estate or trust.

“(d) Dependent defined.—For purpose of this section, the term ‘dependent’ has the meaning given such term by section 152.

“(e) No interest.—No interest shall be allowed on any overpayment attributable to this section.

“(f) Timing and manner of payments.—

“(1) TIMING.—The Secretary shall refund or credit any overpayment attributable to this section as rapidly as possible.

“(2) DELIVERY OF PAYMENTS.—Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to—

“(A) any account to which the payee authorized, on or after January 1, 2024, the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31, United States Code),

“(B) any account belonging to a payee from which that individual, on or after January 1, 2024, made a payment of taxes under this title, or

“(C) any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations).

“(g) Full file of death information.—The Secretary shall use information collected pursuant to section 205(r)(1) of the Social Security Act to ensure no payment is treated as having been made under subsection (a) by an individual who is deceased.

“(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 citizens the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such citizens under this section if such information is not otherwise available to the Secretary,

“(2) regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any overpayment under this section, 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 years, and

“(3) regulations or other guidance to allow dependents of the incarcerated to receive payments if (C)(2) prevents dependents from accessing payments.”.

(b) Administrative provisions.—

(1) DEFINITION OF DEFICIENCY.—Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “7527A, and 6433” and inserting “7527A, 6333, and 6436”.

(2) CONFORMING AMENDMENTS.—

(A) Section 1324(b)(2) of title 31, United States Code, is amended by inserting “6436,” after “6428A,”.

(B) The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end following new item:

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.