119-s2475

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2475 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2475

 To amend the Internal Revenue Code of 1986 to provide rebates to 
 individuals using tariff proceeds.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 28, 2025

 Mr. Hawley introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to provide rebates to 
 individuals using tariff proceeds.

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

SECTION 1. SHORT TITLE; STATEMENT OF POLICY.

    (a) Short Title.--This Act may be cited as the ``American Worker 
Rebate Act of 2025''.

    (b) Statement of 

=== Policy ===
-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.

SEC. 2. TARIFF REBATES FOR INDIVIDUALS.

    (a) In General.--Subchapter B of chapter 65 of subtitle F of the 
Internal Revenue Code of 1986 is amended by inserting after 

section 6428B the following new section:

``

SEC. 6428C. TARIFF REBATES FOR INDIVIDUALS.

 ``

    (a) In General.--
 ``

    (1) Amount of rebate.--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 
 2025 an amount equal to the sum of--
 ``
        (A) the applicable amount (or, in the case of 
 eligible individuals filing a joint return, 200 percent 
 of the applicable amount), plus
 ``
        (B) an amount equal to the product of the 
 applicable amount multiplied by the number of 
 qualifying children (within the meaning of 

section 24
            (c) ) of the taxpayer.
 ``

    (2) Applicable amount.--
 ``
        (A) In general.--For purposes of paragraph

    (1) , 
 the applicable amount shall be equal to the greater 
 of--
 ``
            (i) $600, or
 ``
            (ii) an amount (rounded to the nearest 
 dollar) equal to the quotient of--
 ``
            (I) the amount of qualifying 
 tariff proceeds received during such 
 taxable year, divided by
 ``
            (II) the total number of eligible 
 individuals and qualifying children (as 
 so defined) of such individuals for 
 such taxable year.
 ``
        (B) Qualifying tariff proceeds.--
 ``
            (i) In general.--For purposes of this 
 subsection, the term `qualifying tariff 
 proceeds' means the revenues received in the 
 general fund of the Treasury which are 
 attributable to duties, including any 
 supplemental duties, imposed after January 20, 
 2025.
 ``
            (ii) Projection of proceeds.--For 
 purposes of the application of subsection

    (f) , 
 in determining the amount described in 
 paragraph

    (2)
        (A)
            (ii) 
            (I) , the Secretary may use 
 projections and forecasts for annual tariff 
 revenue based on a receipt to date in each 
 taxable year.
 ``

    (b) Treatment of Credit.--The credit allowed by subsection

    (a) shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
 ``
            (c) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection

    (a) (determined without regard to this 
subsection and subsection

    (e) ) shall be reduced (but not below zero) by 
5 percent of so much of the taxpayer's adjusted gross income as 
exceeds--
 ``

    (1) $150,000 in the case of a joint return,
 ``

    (2) $112,500 in the case of a head of household, and
 ``

    (3) $75,000 in the case of a taxpayer not described in 
 paragraph

    (1) or

    (2) .
 ``
            (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) Coordination With Advance Refunds of Credit.--
 ``

    (1) In general.--The amount of credit which would (but 
 for this paragraph) be allowable under this section shall be 
 reduced (but not below zero) by the aggregate refunds and 
 credits made or allowed to the taxpayer under subsection

    (f) . 
 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.--In the case of a refund or credit 
 made or allowed under subsection

    (f) 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.
 ``

    (f) Advance Refunds and Credits.--
 ``

    (1) In general.--Subject to paragraph

    (5) , each 
 individual who was an eligible individual for such individual's 
 first taxable year beginning in 2024 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.--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

    (e) and this 
 subsection) had applied to such taxable year.
 ``

    (3) Timing and manner of payments.--
 ``
        (A) Timing.--The Secretary shall, subject to the 
 provisions of this title, refund or credit any 
 overpayment attributable to this section as rapidly as 
 possible. No refund or credit shall be made or allowed 
 under this subsection after December 31, 2026.
 ``
        (B) Delivery of payments.--Notwithstanding any 
 other provision of law, the Secretary may certify and 
 disburse refunds payable under this subsection 
 electronically to any account to which the payee 
 authorized, on or after January 1, 2023, 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).
 ``
            (C) Waiver of certain rules.--Notwithstanding 
 

section 3325 of title 31, United States Code, or any 
 other provision of law, with respect to any payment of 
 a refund under this subsection, a disbursing official 
 in the executive branch of the United States Government 
 may modify payment information received from an officer 
 or employee described in 

section 3325

    (a)

    (1)
        (B) of such 
 title for the purpose of facilitating the accurate and 
 efficient delivery of such payment. Except in cases of 
 fraud or reckless neglect, no liability under sections 
 3325, 3527, 3528, or 3529 of title 31, United States 
 Code, shall be imposed with respect to payments made 
 under this subparagraph.
 ``

    (4) No interest.--No interest shall be allowed on any 
 overpayment attributable to this section.
 ``

    (5) Alternate taxable year.--In the case of an individual 
 who, at the time of any determination made pursuant to 
 paragraph

    (3) , has not filed a tax return for the year 
 described in paragraph

    (1) , the Secretary may--
 ``
        (A) apply such paragraph by substituting `2023' 
 for `2024', and
 ``
        (B) if the individual has not filed a tax return 
 for such individual's first taxable year beginning in 
 2023, use information with respect to such individual 
 for calendar year 2024 provided in--
 ``
            (i) Form SSA-1099, Social Security 
 Benefit Statement, or
 ``
            (ii) Form RRB-1099, Social Security 
 Equivalent Benefit Statement.
 ``

    (6) Notice to taxpayer.--Not later than 15 days after the 
 date on which the Secretary distributed any payment to an 
 eligible taxpayer pursuant to this subsection, notice shall be 
 sent by mail to such taxpayer's last known address. Such notice 
 shall indicate the method by which such payment was made, the 
 amount of such payment, and a phone number for the appropriate 
 point of contact at the Internal Revenue Service to report any 
 failure to receive such payment.
 ``

    (g) Identification Number Requirement.--
 ``

    (1) In general.--No credit shall be allowed under 
 subsection

    (a) to an eligible individual who does not include 
 on the return of tax for the taxable year--
 ``
        (A) such individual's valid identification 
 number,
 ``
        (B) in the case of a joint return, the valid 
 identification number of such individual's spouse, and
 ``
            (C) in the case of any qualifying child taken 
 into account under subsection

    (a)

    (2) , the valid 
 identification number of such qualifying child.
 ``

    (2) Valid identification number.--
 ``
        (A) In general.--For purposes of paragraph

    (1) , 
 the term `valid identification number' means a social 
 security number (as such term is defined in 

section 24

    (h)

    (7) ).
 ``
        (B) Adoption taxpayer identification number.--For 
 purposes of paragraph

    (1)
            (C) , in the case of a 
 qualifying child who is adopted or placed for adoption, 
 the term `valid identification number' shall include 
 the adoption taxpayer identification number of such 
 child.
 ``

    (3) Special rule for members of the armed forces.--
 Paragraph

    (1)
        (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 at least 1 spouse 
 satisfies paragraph

    (1)
        (A) .
 ``

    (4) Mathematical or clerical error authority.--Any 
 omission of a correct valid identification number required 
 under this subsection shall be treated as a mathematical or 
 clerical error for purposes of applying 

section 6213

    (g)

    (2) to 
 such omission.
 ``

    (h) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary to carry out the purposes of this 
section, including any such measures as are deemed appropriate to avoid 
allowing multiple credits or rebates to a taxpayer.''.

    (b) Administrative Amendments.--

    (1) Definition of deficiency.--

Section 6211

    (b)

    (4)
        (A) of the 
 Internal Revenue Code of 1986 is amended by inserting 
 ``6428C,'' after ``6428B,''.

    (2) Mathematical or clerical error authority.--

Section 6213

    (g)

    (2)
            (L) of such Code is amended by striking ``or 6428A'' 
 and inserting ``6428A, or 6428C''.
            (c) Treatment of Possessions.--

    (1) Payments to possessions.--
        (A) Mirror code possession.--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.
        (B) 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.

    (2) 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) 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

    (1)
        (B) .

    (3) Definitions and special rules.--
        (A) Possession of the united states.--For purposes 
 of this subsection, the term ``possession of the United 
 States'' includes the Commonwealth of Puerto Rico and 
 the Commonwealth of the Northern Mariana Islands.
        (B) 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.
            (C) 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.
            (d) 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
            (c) of this section shall not be--

    (1) subject to reduction or offset pursuant to 

section 3716 
 or 3720A of title 31, United States Code,

    (2) subject to reduction or offset pursuant to subsection
            (d) ,

    (e) , or

    (f) of 

section 6402 of the Internal Revenue Code 
 of 1986, or

    (3) reduced or offset by other assessed Federal taxes that 
 would otherwise be subject to levy or collection.

    (e) Public Awareness Campaign.--The Secretary of the Treasury (or 
the Secretary's delegate) shall conduct a public awareness campaign, in 
coordination with the Commissioner of Social Security and the heads of 
other relevant Federal agencies, to provide information regarding the 
availability of the credit and rebate allowed under 

section 6428C of 
the Internal Revenue Code of 1986 (as added by this section), including 
information with respect to individuals who may not have filed a tax 
return for taxable year 2023 or 2024.

    (f) Conforming Amendments.--

    (1) Paragraph

    (2) of 

section 1324

    (b) of title 31, United 
 States Code, is amended by inserting ``6428C,'' after 
 ``6428B,''.

    (2) The table of sections for subchapter B of chapter 65 of 
 subtitle F of the Internal Revenue Code of 1986 is amended by 
 inserting after the item relating to 

section 6428B the 
 following:

``

Sec. 6428C. Tariff rebates for individuals.''.
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