Sec. 2. Inflation rebates to individuals
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Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6428B the following new section: 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 2022 an amount equal to the inflation rebate amount determined for such taxable year. For purposes of this section, the term inflation rebate amount means, with respect to any taxpayer for any taxable year, the sum of— $600 ($1,200 in the case of a joint return), plus $600 multiplied by the number of dependents of the taxpayer for such taxable year.
For purposes of this section, the term eligible individual means any individual other than— any nonresident alien individual, any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and an estate or trust. The amount of the credit allowed by subsection
(a)(determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— the excess of— the taxpayer’s adjusted gross income for such taxable year, over $40,000, bears to $5,000. In the case of a joint return or a surviving spouse (as defined in section 2(a)), paragraph
(1)shall be applied by substituting $80,000 for $40,000 and $10,000 for $5,000 . In the case of a head of household (as defined in section 2(b)), paragraph
(1)shall be applied by substituting $60,000 for $40,000 and $7,500 for $5,000 . For purposes of this section, the term dependent has the meaning given such term by section 152. In the case of a return other than a joint return, the $600 amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year. In the case of a joint return, the $1,200 amount in subsection (b)(1) shall be treated as being— $600 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and zero if the valid identification number of neither spouse is so included. A dependent shall not be taken into account under subsection (b)(2) unless the valid identification number of such dependent is included on the return of tax for the taxable year. For purposes of this paragraph, the term valid identification number means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year. For purposes of subparagraph (C), in the case of a dependent who is adopted or placed for adoption, the term valid identification number shall include the adoption taxpayer identification number of such dependent. Subparagraph
(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 the valid identification number of at least 1 spouse is included on the return of tax for the taxable year. In the case of any payment determined pursuant to subsection (g)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer’s return of tax if such valid identification number is available to the Secretary as described in such subsection. Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission. The credit allowed by subsection
(a)shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. The amount of the credit which would (but for this paragraph) be allowable under subsection
(a)shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (g). 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). Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection
(g)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. For purposes of this subsection, payments made under subsection
(g)include payments made by any jurisdiction other than the United States under section 6428C(g) of the income tax law of such jurisdiction, and payments made by possessions to which section 2(b)(2) of the Food and Fuel Family Savings Act pursuant to a plan described in such section. In carrying out this section, the Secretary shall coordinate with each possession of the United States to prevent any application of this paragraph that is inconsistent with the purposes of this subsection. Subject to paragraphs
(5)and (6), each individual who was an eligible individual for such individual’s first taxable year beginning in 2020 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. 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
(f)and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year— any individual who was deceased before January 1, 2022, shall be treated for purposes of applying subsection (e)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year (except that subparagraph
(E)thereof shall not apply), notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before January 1, 2022, such deceased spouse was a member of the Armed Forces of the United States at any time during the taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the taxable year for purposes of applying subsection (e)(2)(B) with respect to such joint return, and no amount shall be determined under subsection (e)(2) with respect to any dependent of the taxpayer if the taxpayer (both spouses in the case of a joint return) was deceased before January 1, 2022. 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, 2022. Notwithstanding any other provision of law (including section 913 of the Electronic Fund Transfer Act ( 15 U.S.C. 1693k )), the Secretary shall disburse refunds payable under this subsection by means of a Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations) which is limited to uses at grocery stores and for gasoline. In the case of a possession described in section 2(b)(1) of the Food and Fuel Family Savings Act , refunds payable under this subsection shall be disbursed in a manner determined by the Secretary, in consultation with the chief executive officer of such possession, to be best suited to meet the purposes of this section and, to the extent possible, subject to the same limitations applicable to refunds made under clause (i). No interest shall be allowed on any overpayment attributable to this subsection. If, at the time of any determination made pursuant to paragraph (3), the individual referred to in paragraph
(1)has filed a return of tax for the individual’s first taxable year beginning in 2021, paragraph
(1)shall be applied with respect to such individual by substituting 2021 for 2020 . In the case of any individual who files, before the additional payment determination date, a return of tax for such individual’s first taxable year beginning in 2021, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of— the amount which would be determined under paragraph
(1)(after the application of subparagraph (A)) by applying paragraph
(1)as of the additional payment determination date, over the amount of any payment made with respect to such individual under paragraph (1). The term additional payment determination date means the earlier of— the date which is 90 days after the 2021 calendar year filing deadline, or September 1, 2022. The term 2021 calendar year filing deadline means the date specified in section 6072(a) with respect to returns for calendar year 2021. In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the year described in paragraph
(1)nor for the year described in paragraph (5)(A), the Secretary shall, consistent with rules similar to the rules of section 6428A(f)(5), apply paragraph
(1)on the basis of information available to the Secretary and shall, on the basis of such information, determine the advance refund amount with respect to such individual without regard to subsection
(d)unless the Secretary has reason to know that such amount would otherwise be reduced by reason of such subsection. Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service. The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection
(g)(including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection
(a)and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection
(a)is determined. The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (h)(1) learn of their eligibility for the advance refunds and credits under subsection (g); are advised of the opportunity to receive such advance refunds and credits as provided under subsection (h)(1); and are provided assistance in applying for such advance refunds and credits. . 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. 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. The Secretary of the Treasury shall pay to each possession of the United States to which the Secretary makes a payment under paragraph
(1)or
(2)an amount equal to the lesser of— the increase (if any) of the administrative expenses of such possession— in the case of a possession described in paragraph (1), by reason of the amendments made by this section, and in the case of a possession described in paragraph (2), by reason of carrying out the plan described in such paragraph, or $500,000 ($10,000,000 in the case of Puerto Rico). The amount described in subparagraph
(A)shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. 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), nor shall any credit or refund be made or allowed under subsection
(g)of such section, to any person— to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or who is eligible for a payment under a plan described in paragraph (2). 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. 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. Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting 6428C, after 6428B, . Any refund payable by reason of section 6428C(g) of the Internal Revenue Code of 1986 (as added by this section), or any such refund payable by reason of subsection
(b)of this section, shall not be— subject to reduction or offset pursuant to subsection (c), (d), (e), or
(f)of section 6402 of the Internal Revenue Code of 1986 or any similar authority permitting offset, or reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting 6428C, after 6428B, . The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6428B the following new item: Sec. 6428C. Inflation rebates to individuals. . The right of any person to any applicable payment under this section shall not be transferable or assignable, at law or in equity, and no applicable payment shall be subject to, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law. For purposes of this subsection, the term applicable payment means— any advance refund amount paid pursuant to section 6428C(g) of Internal Revenue Code of 1986 (as added by this section), any payment made by a possession of the United States with a mirror code tax system (as defined in subsection
(b)of this section) pursuant to such subsection which corresponds to a payment described in clause (i), and any payment made by a possession of the United States without a mirror code tax system (as so defined) pursuant to subsection
(b)of this section. The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall each provide the Secretary of the Treasury (or the Secretary's delegate) such information and assistance as the Secretary of the Treasury (or the Secretary's delegate) may require for purposes of— making payments under section 6428C(g) of the Internal Revenue Code of 1986 to individuals described in section 6428A(f)(5)(A) thereof, or providing administrative assistance to a possession of the United States to allow such possession to promptly distribute payments under subsection
(b)to its residents. Any information provided to the Secretary of the Treasury (or the Secretary's delegate) pursuant to subparagraph may be exchanged with a possession of the United States in accordance with the applicable tax coordination agreement for information exchange and administrative assistance that the Internal Revenue Service has agreed to with such possession. Immediately upon the enactment of this Act, in addition to amounts otherwise available, there are appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated: $1,464,500,000 to remain available until September 30, 2024 for necessary expenses for the Internal Revenue Service for the administration of the advance payments, the provision of taxpayer assistance, and the furtherance of integrated, modernized, and secure Internal Revenue Service systems, of which up to $20,000,000 is available for premium pay for services related to the development of information technology as determined by the Commissioner of the Internal Revenue occurring between January 1, 2022 and December 31, 2023, and all of which shall supplement and not supplant any other appropriations that may be available for this purpose. $7,000,000 to remain available without fiscal year limitation, for necessary expenses for the Bureau of the Fiscal Service to carry out this section (and the amendments made by this section), which shall supplement and not supplant any other appropriations that may be available for this purpose, and $8,000,000 to remain available until September 30, 2024, for the Treasury Inspector General for Tax Administration for the purposes of overseeing activities related to the administration of this section (and the amendments made by this section), which shall supplement and not supplant any other appropriations that may be available for this purpose. For an additional amount for Social Security Administration— Limitation on Administrative Expenses , $38,000,000, to remain available until September 30, 2023. For an additional amount for “Railroad Retirement Board—Limitation on Administration”, $8,300, to remain available until September 30, 2023.
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Sec. 2
Inflation rebates to individuals
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