Sec. 4. Consumer tax rebate

1,070 words·~5 min read·/bill/116/hr/4142/ih/section-4

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section: In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the working families relief amount. The amount allowable as a credit under subsection

(a)(determined without regard to this subsection) for the taxable year shall be reduced (but not below zero) by 0.05 percent for every $10 by which the taxpayer’s household income for the taxable year exceeds the credit cap amount for the calendar year in which such taxable year begins. The credit cap mount for any calendar year is the amount which is equal to 350 percent of the poverty line (within the meaning of section 2110(c)(5) of the Social Security Act) for the size of the family involved for such calendar year. Solely for purposes of paragraph (1), if the eligible taxpayer’s adjusted gross income or the credit cap amount is not a multiple of $10, such amount shall be rounded to the next highest multiple of $10. In any taxable year in which a taxpayer or the taxpayer’s spouse receives an energy refund under section 3 of the America Wins Act , the amount described in subsection

(a)shall be reduced by the energy refund amount received in that taxable year. The Secretary shall promulgate regulations that instruct States on how to inform adult individuals who receive an energy refund under section 3 of the America Wins Act the refund amount the individuals received and how such information shall be provided to the Internal Revenue Service. The Secretary shall establish a telephone and online system that allows an individual to inquire about the refund amount the individual received. In the case of an individual who does not report the refund amount that was provided under section 3 of the America Wins Act or recorded an incorrect number of refund amount, the Secretary shall adjust the energy refund under such section based on the information received from States. Such reduction shall only be made if the Secretary has made a determination that the information meets a sufficient standard for accuracy. For purposes of this section— The working families relief amount with respect to any eligible taxpayer for any taxable year is an amount equal to— the relief amount for the calendar year in which such taxable year begins, multiplied by the scale factor applicable to the eligible taxpayer’s family size. The relief amount with respect to any calendar year is the amount which will provide that the aggregate credits allowed under this section with respect to all eligible taxpayers for taxable years beginning in such calendar year equal the amount which is provided in section 9512(c)(4) for such calendar year. The relief amount for each calendar year shall be determined by the Secretary based on the expected revenues from section 9512(c)(4) for each such calendar year. If, after the close of any calendar year, the Secretary determines that the amount of the aggregate credits allowed under this section with respect to all eligible taxpayers for taxable years beginning in such calendar year differed significantly from the amount equal to the funding provided by section 9512(c)(4) for such calendar year, the Secretary may adjust the relief amount for the immediately succeeding calendar year either up or down in order to account for such difference. The scale factor with respect to any eligible taxpayer for any taxable year shall be determined in accordance with the following table: If the taxpayer’s family size The scale for the taxable year is: factor is: 1 1.00 2 1.35 3 1.69 4 2.04 5 or more 2.38. For purposes of this section— The term eligible taxpayer means any individual other than— 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, any nonresident alien individual, or an estate or trust. Such term shall not include any individual who— in the case of a return that is not a joint return, does not include the social security number of the individual, and in the case of joint return, does not include the social security number of at least one of the taxpayers on such return. For purposes of the preceding sentence, the social security number shall not include a TIN issued by the Internal Revenue Service. The term household income means, with respect to any eligible taxpayer, an amount equal to the sum of— the adjusted gross income of the taxpayer, plus the aggregate adjusted gross incomes of all other individuals who are taken into account in determining the taxpayer’s family size under subsection

(g)and who were required to file a return of the tax imposed by section 1 for the taxable year. The family size with respect to any taxpayer shall be equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 for the taxable year. The family size determined under paragraph

(1)shall not include any individual (including the taxpayer) whose social security account number is not included on the return of tax for the taxable year. The value of the credit provided under this section shall not be considered income or resources for any purpose under any Federal, State, or local law (including a law relating to an income tax or public assistance program (including health care, cash aid, child care, nutrition programs, and housing assistance)) and no participating State or political subdivision of a State shall decrease any assistance otherwise provided one or more individuals because of the receipt of a credit under this section. . Section 6211 of the Internal Revenue Code of 1986 is amended by inserting 36C, before 53(e) . Paragraph

(2)of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B, . The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Working families relief. . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.