Sec. 4. Establishment of the Carbon Dividend Trust Fund
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Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following: There is hereby established in the Treasury of the United States a trust fund to be known as the Carbon Dividend Trust Fund , consisting of such amounts as may be appropriated to such trust fund as provided for in this section. There is hereby appropriated to the Carbon Dividend Trust Fund amounts equal to the fees received into the Treasury less any amounts refunded or paid under section 9902(d) or 9906 of chapter 101 for each month.
Amounts in the trust fund shall be available for the following purposes: So much of the expenses necessary to administer the Carbon Dividend Trust Fund for each year, as does not exceed— in the case of the first 5 calendar years ending after the date of the enactment of this section, the administrative expenses for any year may not exceed 8 percent of amounts appropriated to the Carbon Dividend Trust Fund during such year, and in the case of any calendar year thereafter, 2 percent of the 5-year rolling average of the amounts appropriated to the Carbon Dividend Trust Fund.
So much of the expenses as are necessary to administer chapter 101 for any year as does not to exceed 0.60 percent of the amounts appropriated to the Carbon Dividend Trust Fund for the previous year, and further limited as follows: The Department of the Treasury. The Social Security Administration. The Environmental Protection Agency. Department of State. From the amounts in the Carbon Dividend Trust Fund made available under paragraphs
(1)and
(2)of this subsection for any year, the Secretary shall for each month beginning more than 270 days after the date of the enactment of the Energy Innovation and Carbon Dividend Act of 2018 , make carbon dividend payments to each eligible individual. A carbon dividend payment is one pro-rata share for each adult and half a pro-rata share for each child under 19 years old of amounts available for the month in the Carbon Dividend Trust Fund. The term eligible individual means, with respect to any month, any natural living person who has a valid Social Security number or taxpayer identification number and is a citizen or lawful resident of the United States (other than any individual who is a citizen of any possession of the United States and whose bona fide residence is outside of the United States). The Secretary is authorized to verify an individual’s eligibility to receive a carbon dividend payment. Amounts paid under this subsection shall be includible in gross income. The carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. The Secretary shall transfer to the Carbon Dividend Trust Fund such amounts as are necessary for the disbursement of an advanced carbon dividend to all eligible individuals as follows: An advanced carbon dividend shall be the same as the anticipated first carbon dividend required to be distributed under subparagraph
(A)and shall be distributed the month prior to the first collection of the carbon fee. Total amounts disbursed as advanced carbon dividends shall be deducted from the carbon dividends on a pro-rata basis over the first 3 years after the disbursement of the first carbon dividends. The Secretary shall promulgate rules, guidance, and regulations useful and necessary to implement the Carbon Dividend Trust Fund. . The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: Sec. 9512. Carbon Dividend Trust Fund. .