119-hr2802

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2802 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2802

 To amend the Internal Revenue Code of 1986 to provide individuals a 
 refundable credit for a portion of Federal income tax liability for 
 2025.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 9, 2025

 Mr. Vasquez introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to provide individuals a 
 refundable credit for a portion of Federal income tax liability for 
 2025.

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Tax Relief from Tariffs and High 
Costs Act''.

SEC. 2. REFUNDABLE CREDIT FOR PORTION OF INDIVIDUAL FEDERAL INCOME TAX 
 LIABILITY FOR 2025.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``

SEC. 36C. CREDIT FOR PORTION OF INDIVIDUAL FEDERAL INCOME TAX 
 LIABILITY FOR 2025.

 ``

    (a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for any 
taxable beginning after December 31, 2024, and before January 1, 2026, 
an amount equal to 10 percent of the taxpayer's Federal income tax 
liability for such taxable year.
 ``

    (b) Limitation Based on Modified Adjusted Gross Income.--
Subsection

    (a) shall not apply to any taxpayer for any taxable year if 
the taxpayer's modified adjusted gross income (as defined in 

section 36

    (b)

    (2)
        (B) ) exceeds $100,000 ($200,000 in the case of a joint return).
 ``
            (c) Federal Income Tax Liability.--For purposes of this section, 
the term `Federal income tax liability' means the excess (if any) of--
 ``

    (1) the sum of the amounts described in paragraphs

    (1) and

    (2) of 

section 26

    (a) , over
 ``

    (2) the sum of the credits allowed under subpart A of 
 this part.''.

    (b) Conforming Amendments.--

    (1) Section 6211

    (b)

    (4)
        (A) of the Internal Revenue Code of 
 1986 is amended by inserting ``36C,'' after ``36B,''.

    (2) Paragraph

    (2) of 

section 1324

    (b) of title 31, United 
 States Code, is amended by inserting ``36C,'' after ``36B,''.

    (3) The table of sections for subpart C of part IV of 
 subchapter A of chapter 1 of the Internal Revenue Code of 1986 
 is amended by inserting after the item relating to 

section 36B 
 the following new item:

``

Sec. 36C. Credit for portion of individual Federal income tax 
 liability for 2025.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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