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