[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7143 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7143
To provide for energy rebates to individual taxpayers, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2022
Mr. Thompson of California (for himself, Ms. Underwood, and Mr. Larson
of Connecticut) introduced the following bill; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for energy rebates to individual taxpayers, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SENSE OF CONGRESS.
It is the sense of Congress that energy rebates are necessitated by
the global disruptions caused by both COVID-19 and the illegal Russian
invasion of Ukraine.
SEC. 2. ENERGY REBATES TO INDIVIDUALS.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by inserting after section 6428B the following
new section:
``SEC. 6428C. ENERGY REBATES TO INDIVIDUALS.
``(a) In General.--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 2022 the sum of the monthly
specified energy rebates determined with respect to the taxpayer under
subsection (b) for qualifying calendar months during such taxable year.
``(b) Monthly Specified Energy Rebates.--
``(1) In general.--For purposes of this section, the term
`monthly specified energy rebate' means, with respect to any
taxpayer for any qualifying calendar month, the sum of--
``(A) $100 ($200 in the case of a joint return),
plus
``(B) $100 multiplied by the number of dependents
of the taxpayer during taxable year 2022.
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount of the credit allowed
by subsection (a) (determined without regard to this
subsection and subsection (f)) shall be reduced (but
not below zero) by \1/12\ of the amount which bears the
same ratio to such credit (as so determined) as--
``(i) the excess of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) $75,000, bears to
``(ii) $5,000.
``(B) Special rules.--
``(i) Joint return or surviving spouse.--In
the case of a joint return or a surviving
spouse (as defined in section 2(a)),
subparagraph (A) shall be applied by
substituting `$150,000' for `$75,000' and
`$10,000' for `$5,000'.
``(ii) Head of household.--In the case of a
head of household (as defined in section 2(b)),
subparagraph (A) shall be applied by
substituting `$112,500' for `$75,000' and
`$7,500' for `$5,000'.
``(c) Qualifying Calendar Month.--For purposes of this section, the
term `qualifying calendar month' means any month in 2022 during which
the average price of gasoline in the United States is equal to or
greater than $4 per gallon.
``(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) Definitions and Special Rules.--
``(1) Dependent defined.--For purposes of this section, the
term `dependent' has the meaning given such term by section
152.
``(2) Identification number requirement.--
``(A) In general.--In the case of a return other
than a joint return, the $100 amount in subsection
(b)(1)(A) shall be treated as being zero unless the
taxpayer includes the valid identification number of
the taxpayer on the return of tax for the taxable year.
``(B) Joint returns.--In the case of a joint
return, the $200 amount in subsection (b)(1)(B) shall
be treated as being--
``(i) $100 if the valid identification
number of only 1 spouse is included on the
return of tax for the taxable year, and
``(ii) zero if the valid identification
number of neither spouse is so included.
``(C) Dependents.--A dependent shall not be taken
into account under subsection (b)(1)(B) unless the
valid identification number of such dependent is
included on the return of tax for the taxable year.
``(D) Valid identification number.--
``(i) In general.--For purposes of this
paragraph, the term `valid identification
number' means a social security number issued
to an individual by the Social Security
Administration on or before the due date for
filing the return for the taxable year.
``(ii) Adoption taxpayer identification
number.--For purposes of subparagraph (C), in
the case of a dependent who is adopted or
placed for adoption, the term `valid
identification number' shall include the
adoption taxpayer identification number of such
dependent.
``(E) Special rule for members of the armed
forces.--Subparagraph (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 the valid identification number of at
least 1 spouse is included on the return of tax for the
taxable year.
``(F) Coordination with certain advance payments.--
In the case of any payment made pursuant to subsection
(g)(6), a valid identification number shall be treated
for purposes of this paragraph as included on the
taxpayer's return of tax if such valid identification
number is provided pursuant to such subsection.
``(G) Mathematical or clerical error authority.--
Any omission of a correct valid identification number
required under this paragraph shall be treated as a
mathematical or clerical error for purposes of applying
section 6213(g)(2) to such omission.
``(3) Credit treated as refundable.--The credit allowed by
subsection (a) shall be treated as allowed by subpart C of part
IV of subchapter A of chapter 1.
``(f) Coordination With Advance Refunds of Credit.--
``(1) Reduction of refundable credit.--The amount of the
credit which would (but for this paragraph) be allowable under
subsection (a) shall be reduced (but not below zero) by the
aggregate refunds and credits made or allowed to the taxpayer
(or any dependent of the taxpayer) under subsection (g). 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.--Except as otherwise provided by the
Secretary, in the case of a refund or credit made or allowed
under subsection (g) 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.
``(g) Advance Refunds and Credits.--
``(1) In general.--Subject to paragraphs (5) and (6), each
individual who was an eligible individual for such individual's
first taxable year beginning in 2020 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.--
``(A) In general.--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 (f)
and this subsection) had applied to such taxable year.
``(B) Treatment of deceased individuals.--For
purposes of determining the advance refund amount with
respect to such taxable year, any individual who was
deceased before January 1, 2022, shall be treated for
purposes of applying subsection (e)(3) in the same
manner as if the valid identification number of such
person was not included on the return of tax for such
taxable year and no amount shall be determined under
subsection (e)(3) with respect to any dependent of the
taxpayer if the taxpayer (both spouses in the case of a
joint return) was deceased before January 1, 2022.
``(3) Timing and manner of payments.--
``(A) Timing.--The Secretary shall, subject to the
provisions of this title and consistent with rules
similar to the rules of subparagraphs (B) and (C) of
section 6428A(f)(3), refund or credit any overpayment
attributable to this subsection as rapidly as possible,
consistent with a rapid effort to make payments
attributable to such overpayments electronically if
appropriate. No refund or credit shall be made or
allowed under this subsection after December 31, 2022.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this subsection.
``(5) Application to individuals who have filed a return of
tax for 2021.--
``(A) Application to 2021 returns filed at time of
initial determination.--If, at the time of any
determination made pursuant to paragraph (3), the
individual referred to in paragraph (1) has filed a
return of tax for the individual's first taxable year
beginning in 2021, paragraph (1) shall be applied with
respect to such individual by substituting `2021' for
`2020'.
``(B) Additional payment.--
``(i) In general.--In the case of any
individual who files, before the additional
payment determination date, a return of tax for
such individual's first taxable year beginning
in 2021, the Secretary shall make a payment (in
addition to any payment made under paragraph
(1)) to such individual equal to the excess (if
any) of--
``(I) the amount which would be
determined under paragraph (1) (after
the application of subparagraph (A)) by
applying paragraph (1) as of the
additional payment determination date,
over
``(II) the amount of any payment
made with respect to such individual
under paragraph (1).
``(ii) Additional payment determination
date.--The term `additional payment
determination date' means the earlier of--
``(I) the date which is 90 days
after the 2021 calendar year filing
deadline, or
``(II) September 1, 2022.
``(iii) 2021 calendar year filing
deadline.--The term `2020 calendar year filing
deadline' means the date specified in section
6072(a) with respect to returns for calendar
year 2021. Such date shall be determined after
taking into account any period disregarded
under section 7508A if such disregard applies
to substantially all returns for calendar year
2021 to which section 6072(a) applies.
``(6) Application to certain individuals who have not filed
a return of tax for 2020 or 2021 at time of determination.--In
the case of any individual who, at the time of any
determination made pursuant to paragraph (3), has filed a tax
return for neither the year described in paragraph (1) nor for
the year described in paragraph (5)(A), the Secretary shall,
consistent with rules similar to the rules of section
6428A(f)(5)(H)(i), apply paragraph (1) on the basis of
information available to the Secretary and shall, on the basis
of such information, determine the advance refund amount with
respect to such individual without regard to subsection (d)
unless the Secretary has reason to know that such amount would
otherwise be reduced by reason of such subsection.
``(7) Special rule related to time of filing return.--
Solely for purposes of this subsection, a return of tax shall
not be treated as filed until such return has been processed by
the Internal Revenue Service.
``(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 taxpayers the
opportunity to provide the Secretary information sufficient to
allow the Secretary to make payments to such taxpayers under
subsection (g) (including the determination of the amount of
such payment) if such information is not otherwise available to
the Secretary, and
``(2) regulations or other guidance to ensure to the
maximum extent administratively practicable that, in
determining the amount of any credit under subsection (a) and
any credit or refund under subsection (g), 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 year for which
an advance refund amount is determined and the taxable year for
which a credit under subsection (a) is determined.
``(i) Outreach.--The Secretary shall carry out a robust and
comprehensive outreach program to ensure that all taxpayers described
in subsection (h)(1) learn of their eligibility for the advance refunds
and credits under subsection (g), are advised of the opportunity to
receive such advance refunds and credits as provided under subsection
(h)(1), and are provided assistance in applying for such advance
refunds and credits.''.
(b) Treatment of Certain Possessions.--
(1) Payments to possessions with mirror code tax systems.--
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.
(2) Payments to 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.
(3) 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), nor shall any credit or
refund be made or allowed under subsection (g) of such 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 (2).
(4) 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.
(5) 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
(c) Administrative Provisions.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``6428,
6428A, and 6428B'' and inserting ``6428, 6428A, 6428B, and
6428C''.
(2) Mathematical or clerical error authority.--Section
6213(g)(2) of such Code is amended--
(A) by striking ``or section 6428A or 6428B
(relating to additional recovery rebates to
individuals)'' and inserting ``or section 6428A, 6428B,
or 6428C'', and
(B) by striking ``6428, 6428A, or 6428B'' and
inserting ``6428, 6428A, 6428B, or 6428C'' in
subparagraph (L).
(3) 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 (b) of this section shall
not be--
(A) subject to reduction or offset pursuant to
section 3716 or 3720A of title 31, United States Code,
(B) subject to reduction or offset pursuant to
subsection (c), (d), (e), or (f) of section 6402 of the
Internal Revenue Code of 1986, or
(C) reduced or offset by other assessed Federal
taxes that would otherwise be subject to levy or
collection.
(4) Assignment of benefits.--
(A) In general.--The right of any person to any
applicable payment shall not be transferable or
assignable, at law or in equity, and no applicable
payment shall be subject to, execution, levy,
attachment, garnishment, or other legal process, or the
operation of any bankruptcy or insolvency law.
(B) Encoding of payments.--In the case of an
applicable payment described in subparagraph
(E)(iii)(I) that is paid electronically by direct
deposit through the Automated Clearing House (ACH)
network, the Secretary of the Treasury (or the
Secretary's delegate) shall--
(i) issue the payment using a unique
identifier that is reasonably sufficient to
allow a financial institution to identify the
payment as an applicable payment, and
(ii) further encode the payment pursuant to
the same specifications as required for a
benefit payment defined in section 212.3 of
title 31, Code of Federal Regulations.
(C) Garnishment.--
(i) Encoded payments.--In the case of a
garnishment order that applies to an account
that has received an applicable payment that is
encoded as provided in subparagraph (B), a
financial institution shall follow the
requirements and procedures set forth in part
212 of title 31, Code of Federal Regulations,
except--
(I) notwithstanding section 212.4
of title 31, Code of Federal
Regulations (and except as provided in
subclause (II)), a financial
institution shall not fail to follow
the procedures of sections 212.5 and
212.6 of such title with respect to a
garnishment order merely because such
order has attached, or includes, a
notice of right to garnish federal
benefits issued by a State child
support enforcement agency, and
(II) a financial institution shall
not, with regard to any applicable
payment, be required to provide the
notice referenced in sections 212.6 and
212.7 of title 31, Code of Federal
Regulations.
(ii) Other payments.--If a financial
institution receives a garnishment order (other
than an order that has been served by the
United States), that has been received by a
financial institution and that applies to an
account into which an applicable payment that
has not been encoded as provided in
subparagraph (B) has been deposited
electronically or by an applicable payment that
has been deposited by check on any date in the
lookback period, the financial institution,
upon the request of the account holder, shall
treat the amount of the funds in the account at
the time of the request, up to the amount of
the applicable payment (in addition to any
amounts otherwise protected under part 212 of
title 31, Code of Federal Regulations), as
exempt from a garnishment order without
requiring the consent of the party serving the
garnishment order or the judgment creditor.
(iii) Liability.--A financial institution
that acts in good faith in reliance on clause
(i) or (ii) shall not be subject to liability
or regulatory action under any Federal or State
law, regulation, court or other order, or
regulatory interpretation for actions
concerning any applicable payments.
(D) Preservation of reclamation rights.--This
paragraph shall not alter the status of applicable
payments as tax refunds or other nonbenefit payments
for purpose of any reclamation rights of the Department
of the Treasury or the Internal Revenue Service as per
part 210 of title 31, Code of Federal Regulations.
(E) Definitions.--For purposes of this paragraph--
(i) Account holder.--The term ``account
holder'' means a natural person whose name
appears in a financial institution's records as
the direct or beneficial owner of an account.
(ii) Account review.--The term ``account
review'' means the process of examining
deposits in an account to determine if an
applicable payment has been deposited into the
account during the lookback period. The
financial institution shall perform the account
review following the procedures outlined in
section 212.5 of title 31, Code of Federal
Regulations and in accordance with the
requirements of section 212.6 of title 31, Code
of Federal Regulations.
(iii) Applicable payment.--The term
``applicable payment'' means--
(I) any advance refund amount paid
pursuant to section 6428C(g) of
Internal Revenue Code of 1986 (as added
by this section),
(II) any payment made by a
possession of the United States with a
mirror code tax system (as defined in
subsection (b) of this section)
pursuant to such subsection which
corresponds to a payment described in
subclause (I), and
(III) any payment made by a
possession of the United States without
a mirror code tax system (as so
defined) pursuant to subsection (b) of
this section.
(iv) Garnishment.--The term ``garnishment''
means execution, levy, attachment, garnishment,
or other legal process.
(v) Garnishment order.--The term
``garnishment order'' means a writ, order,
notice, summons, judgment, levy, or similar
written instruction issued by a court, a State
or State agency, a municipality or municipal
corporation, or a State child support
enforcement agency, including a lien arising by
operation of law for overdue child support or
an order to freeze the assets in an account, to
effect a garnishment against a debtor.
(vi) Lookback period.--The term ``lookback
period'' means the two month period that begins
on the date preceding the date of account
review and ends on the corresponding date of
the month two months earlier, or on the last
date of the month two months earlier if the
corresponding date does not exist.
(5) Agency information sharing and assistance.--
(A) In general.--The Commissioner of Social
Security, the Railroad Retirement Board, and the
Secretary of Veterans Affairs shall each provide the
Secretary of the Treasury (or the Secretary's delegate)
such information and assistance as the Secretary of the
Treasury (or the Secretary's delegate) may require for
purposes of--
(i) making payments under section 6428C(g)
of the Internal Revenue Code of 1986 to
individuals described in paragraph (6)(A)
thereof, or
(ii) providing administrative assistance to
a possession of the United States (as defined
in subsection (c)(3)(A)) to allow such
possession to promptly distribute payments
under subsection (c) to its residents.
(B) Exchange of information with possessions.--Any
information provided to the Secretary of the Treasury
(or the Secretary's delegate) pursuant to subparagraph
(A)(ii) may be exchanged with a possession of the
United States in accordance with the applicable tax
coordination agreement for information exchange and
administrative assistance that the Internal Revenue
Service has agreed to with such possession.
(6) Conforming amendments.--
(A) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting ``6428C,''
after ``6428B,''.
(B) The table of sections for subchapter B of
chapter 65 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section
6428B the following new item:
``Sec. 6428C. Energy rebates to individuals.''.
(d) Reports to Congress.--Each week beginning after the date of the
enactment of this Act and beginning before December 31, 2022, on Friday
of such week, not later than 3 p.m. eastern time, the Secretary of the
Treasury shall provide a written report to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate. Such report shall include the following information with
respect to payments made pursuant to section 6428B of the Internal
Revenue Code of 1986:
(1) The number of scheduled payments sent to the Bureau of
Fiscal Service for payment by direct deposit or paper check for
the following week (stated separately for direct deposit and
paper check).
(2) The total dollar amount of the scheduled payments
described in paragraph (1).
(3) The number of direct deposit payments returned to the
Department of the Treasury and the total dollar value of such
payments, for the week ending on the day prior to the day on
which the report is provided.
(4) The total number of letters related to payments under
section 6428C of such Code mailed to taxpayers during the week
ending on the day prior to the day on which the report is
provided.
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