H.R. 10494 — American Tariff Rebate Act

This section establishes a new refundable tax credit under section 6428C for eligible individuals for the first taxable year beginning in 2026, equal to $2,000 ($4,000 for joint returns) plus $600 per dependent. The credit phases out for adjusted gross income above $75,000 ($150,000 for joint returns or surviving spouses; $112,500 for heads of household) and is unavailable to nonresident aliens, dependents, estates, and trusts. It directs advance refunds based on 2025 returns, payable by December 31, 2026, and includes the credit among those treated as negative tax amounts when computing deficiencies under section 6211.

This section repeals the extension and enhancement of reduced individual income tax rates. The repeal takes effect as if included in section 70101 of Public Law 119–21.

This section reduces the basic exclusion amount under the estate and gift tax to $10 million (from $15 million), effective as if included in section 70106 of Public Law 119–21.

This section permanently rescinds $46.55 billion from unobligated balances for border infrastructure and wall system, and $45 billion from unobligated balances for detention capacity, both under Public Law 119–21.