Sec. 301. Government Match Tax Credit

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Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: In the case of an eligible individual, there shall be allowed as a credit for the taxable year an amount equal to the sum of— 1 percent of the eligible individual’s gross income, plus the applicable percentage of the participant’s contributions to the American Worker Retirement Fund during the taxable year. For purposes of this section, the applicable percentage is— 100 percent of so much of the contributions to the American Worker Retirement Fund as do not exceed 3 percent of gross income, 50 percent of so much of such contributions as exceeds 3 percent but does not exceed 5 percent of gross income, and 0 percent for such contributions that exceed 5 percent of so much of such contributions as exceeds 5 percent of gross income.

The credit determined under subsection

(a)shall be reduced by $75 for each $1,000 or portion thereof by which the eligible individual’s gross income exceeds the phaseout amount. For purposes of paragraph (1), the phaseout amount is— in the case of a joint return, an amount equal to 200 percent of the United States median income for the preceding taxable year, as determined by the Secretary, in the case of a head of household (as defined in section 2(b)), 3/4 of the amount determined under subparagraph (A), and in any other case, 1/2 of the amount determined under subparagraph (A). For purposes of this section, the term eligible individual has the meaning given the term participant by section 2(13) of the Retirement Savings for Americans Act of 2022. For purposes of this section, the American Worker Retirement Fund is the Fund created under section 101(a) of the Retirement Savings for Americans Act of 2022. Any amount allowed as a credit under subsection (a)— shall not be allowed as a credit against any tax imposed by this subtitle, and shall be treated as an overpayment under section 6401(b). The Secretary shall contribute the amount treated as an overpayment under paragraph

(1)to the eligible individual’s account with the American Worker Retirement Fund. The Secretary shall prescribe regulations to provide that the payments made under subsection

(f)are made as concurrently as is reasonably possible with contributions by a taxpayer to the American Worker Retirement Fund. Such regulations shall provide that, for purposes of such payments, the credit under subsection

(a)may be determined on the basis of the eligible individual’s gross income for the preceding taxable year. If the aggregate amount of payments under subsection

(f)with respect to an eligible individual for any taxable year exceeds the amount of the credit allowed under subsection

(a)to such individual for such taxable year, the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess. Any failure to so increase the tax shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). For forfeiture of funds that do not remain in the eligible individual’s account for at least 6 months, see section 105(e) of the Retirement Savings for Americans Act of 2022 . . The table of sections for subpart A 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 26E the following new item: Sec. 25F. Government Match Tax Credit. The amendments made by this section shall apply to taxable years beginning after December 31, 2022.