“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 cites the Act as the “American Worker Rebate Act of 2025” and states that it is the policy of the United States to use revenue raised from tariffs applied on foreign imports to provide relief for working people through immediate tax rebates.
This section establishes a new refundable income tax credit under IRC §6428C for tariff rebates to eligible individuals (i.e., nonresident aliens, dependents, estates, and trusts excluded) for the first taxable year beginning in 2025 in an amount equal to the applicable amount per individual (200% of the applicable amount for joint returns) plus the applicable amount multiplied by the number of qualifying children (as defined in IRC §24(c)), where the applicable amount is the greater of $600 or qualifying tariff proceeds (i.e., general fund revenues from duties imposed after January 20, 2025) for the year divided by the total number of eligible individuals and qualifying children. The credit phases out (but not below zero) by 5% of adjusted gross income exceeding $75,000 ($112,500 for head of household returns or $150,000 for joint returns). It further directs the Secretary of the Treasury to provide advance refunds treated as 2024 overpayments (calculated as if the credit applied to 2024, using projections of tariff proceeds), to be issued as rapidly as possible but no later than December 31, 2026, with coordination to avoid double benefits, no interest allowed, and special rules for non-filers using 2023 or 2024 Social Security data. This section also amends the permanent appropriation in 31 U.S.C. §1324(b)(2) to authorize disbursements for refunds attributable to IRC §6428C (previously authorized through §6428B and specified other credits).