Bill > HR7636

This bill establishes an "individual tariff refund credit" to provide financial relief to eligible individuals by allowing them to claim a credit against their income taxes for a portion of tariff revenues that a court orders the federal government to repay due to an unlawfully imposed tariff. An "eligible individual" is generally any U.S. resident who is not a nonresident alien, not claimed as a dependent by another taxpayer, and not an estate or trust. The credit is calculated based on the total amount of tariff revenues to be repaid, divided by the number of individuals in the households of all eligible individuals, and then multiplied by the number of individuals in the eligible taxpayer's household, including dependents. This credit can be paid in advance to eligible individuals. Additionally, the bill imposes a 100% excise tax on certain tariff refunds received by businesses if they passed on more than 50% of the tariff costs to consumers, with exceptions for inflation and costs not passed on. This excise tax applies to businesses that do not meet a certain gross receipts test, specifically those with less than $1 billion in gross receipts. The provisions related to the individual tariff refund credit apply to taxable years beginning after December 31, 2024, while the excise tax on certain tariff refunds applies to amounts received after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/7636/all-info