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Title II — Returning fee revenue to the American people

S. 1639 · 115th Congress · Jul 26, 2017 · Lineage

II Returning fee revenue to the American people

Sec. 201 Reduction in corporate tax rate

(a)
In general— Section 11(b) of the Internal Revenue Code of 1986 is amended—
(1)
by inserting “and” at the end of subparagraph (B);
(2)
by striking subparagraphs (C) and (D) and inserting the following:

“(C) 29 percent of so much of the taxable income as exceeds $75,000.”

(3)
by striking “$11,750” in the second sentence and inserting “$8,000”; and
(4)
by striking the last sentence.
(b)
Conforming amendments—
(1)
Paragraph (2) of section 11(b) of the Internal Revenue Code of 1986 is amended by striking “35 percent” and inserting “29 percent”.
(2)
Paragraphs (1) and (2) of section 1445(e) of such Code are each amended by striking “35 percent” and inserting “29 percent”.
(3)
Subparagraph (A) of section 7518(g)(6) of such Code is amended by striking “34 percent” and inserting “29 percent”.
(4)
Paragraph (2) of section 53511(f) of title 46, United States Code, is amended by striking “34 percent” and inserting “29 percent”.
(c)
Effective dates—
(1)
In general— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2017.
(2)
Withholding— The amendments made by subsection (b)(2) shall take effect on January 1, 2018.

Sec. 202 Establishment of refundable credit for workers

(a)
In general— Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section:

“36A. Carbon fee offset credit

“(a) In general—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of—

“(1) 6.2 percent of the earned income of the taxpayer, or

“(2) $550 (twice such amount in the case of a joint return).

“(b) Eligible individual—For purposes of this section, the term eligible individual means any individual other than—

“(1) any nonresident alien individual,

“(2) 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, and

“(3) any individual who, for the month of December of the taxable year, was entitled to or eligible for a benefit payment described in paragraph (1) or (2) of section 203(b) of the American Opportunity Carbon Fee Act of 2017.

“(c) Earned income

“(1) In general—For purposes of this section, the term earned income has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income.

“(2) Certain combat zone compensation—For purposes of paragraph (1), any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year.

“(d) Inflation adjustment

“(1) In general—In the case of a taxable year beginning after 2018, the $550 amount in subsection (a)(2) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 1992” in subparagraph (B) thereof.

“(2) Rounding—If any dollar amount, after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10.”

(b)
Refunds disregarded in the administration of Federal programs and federally assisted programs— Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) 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.
(c)
Conforming amendments—
(1)
Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting “36A,” after “36,”.
(2)
The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36 the following new item:
(d)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 203 Establishment of payments to Social Security beneficiaries and other retired and disabled Americans

(a)
Authority To make payments— The Secretary of the Treasury or the Secretary of the Treasury's delegate (referred to in this section as the Secretary) shall, during the period between April 1 and May 15 of calendar year 2018 and each year thereafter, disburse a payment to each eligible beneficiary in an amount equal to the amount in effect for taxable years beginning in the preceding calendar year under section 36A(a)(2) of the Internal Revenue Code of 1986.
(b)
Eligible beneficiary— For purposes of this section, the term eligible beneficiary means an individual who, for the month of December of the preceding year, was—
(1)
entitled to any benefit payment described in subparagraph (B) of section 2201(a)(1) of the American Recovery and Reinvestment Act of 2009; or
(2)
eligible for a benefit payment described in subparagraph (C) of such section.
(c)
Residency requirement— A payment may be made under this section only to an eligible beneficiary who resides in any State (as defined in section 204(f)), as determined based on the current address of record for such beneficiary under the applicable program for payment of benefits described in subsection (b).
(d)
No double payments— An eligible beneficiary may not receive more than 1 payment per calendar year under this section, regardless of whether such beneficiary is entitled to or eligible for more than 1 benefit payment described in paragraph (1) or (2) of subsection (b).
(e)
Identification of recipients— The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall certify the eligible beneficiaries entitled to receive payments under this section and provide the Secretary with any information necessary to disburse such payments.
(f)
Application of additional rules— Rules similar to the rules of subsections (a)(4), (c), and (d) of section 2201 of the American Recovery and Reinvestment Act of 2009 shall apply for purposes of payments under this section.

Sec. 204 State-based cost mitigation grant program

(a)
In general— The Secretary of the Treasury shall provide to each State which meets the requirements of subsection (d) a cost mitigation grant for each calendar year after 2017 in an amount determined under subsection (c).
(b)
Use of funds— A State receiving a cost mitigation grant under this section may use the grant only—
(1)
to assist low-income households in reducing energy expenses and meeting cost increases attributable to the fees imposed under subchapter E of chapter 38 of the Internal Revenue Code of 1986 (as added by this Act);
(2)
to assist rural households in reducing energy expenses and meeting such increases attributable to such fees; and
(3)
to provide job training and worker transition assistance, with priority given to workers and former workers in fossil-fuel related industries.
(c)
Amount of grant—
(1)
In general— The amount of the cost mitigation grant made to any State for any calendar year shall be equal to the product of—
(A)
the annual grant limitation determined under paragraph (3) for such calendar year; and
(B)
the State allocation percentage for the State (determined under paragraph (2)).
(2)
State allocation percentage— The State allocation percentage for a State is the amount (expressed as a percentage) equal to the quotient of—
(A)
the population of such State (as reported in the most recent decennial census); and
(B)
the population of all States (as reported in the most recent decennial census).
(3)
Annual grant limitation—
(A)
In general— The annual grant limitation is $10,000,000,000.
(B)
Inflation adjustment— In the case of any calendar year after 2018, the $10,000,000,000 amount in subparagraph (A) shall be increased by an amount equal to—
(i)
such dollar amount; multiplied by
(ii)
the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year, determined by substituting “calendar year 2017” for “calendar year 1992” in subparagraph (B) thereof.
(4)
Redistribution— In any case in which one or more States do not meet the requirements described in subsection (d) for a calendar year, an amount equal to the State allocation percentage for such State or States shall be distributed to each State which did meet such conditions in an amount equal to the product of—
(A)
such amount; and
(B)
the State allocation percentage of such State (determined by not taking into account under paragraph (2)(B) the population of any State which did not meet the requirements of subsection (d) for such calendar year).
(d)
Requirements for receipt of grant—
(1)
In general— A State is eligible to receive a cost mitigation grant for any calendar year if—
(A)
the chief executive officer of the State certifies that the State will use such grant as needed to deliver benefits to all eligible low-income individuals through a household rebate program;
(B)
the State has filed with the Secretary of the Treasury a State plan covering the calendar year which details the use of the funds received under the grant;
(C)
the State agrees to comply with any audit requirements under subsection (d); and
(D)
the State has complied with the requirements of this section for all preceding years or the State has remedied all prior noncompliance to the satisfaction of the Secretary of the Treasury.
(2)
Household rebate program— For purposes of paragraph (1)(A)—
(A)
In general— The term household rebate program means a program for delivering to monthly benefits in an aggregate annual amount equal to the applicable amount to all eligible low-income individuals through a State-administered electronic benefit transfer system.
(B)
Applicable amount— The term applicable amount means, with respect to any eligible low-income individual for any calendar year, an amount equal to the excess of—
(i)
the amount in effect for taxable years ending with or within the preceding calendar year under section 36A(a)(2) of the Internal Revenue Code of 1986, over
(ii)
any amount allowed or claimed as a credit by such individual under such section for the taxable year ending with or within the preceding calendar year.
(C)
Eligible low-income individuals— The term eligible low-income individual means, with respect to any calendar year, any individual who—
(i)
has attained the age of 18 before the end of the calendar year;
(ii)
lives in a household that has a gross income that does not exceed 150 percent of the poverty line as defined by section 673(2) of the Community Services Block Grant Act;
(iii)
participates in a federally funded State administered assistance program or otherwise applies for such benefits under such a program; and
(iv)
for the month of December of the preceding calendar year, was not entitled to or eligible for a benefit payment described in section 203(b).
(D)
Coordination rules— The Secretary of the Treasury shall coordinate with the States and other applicable Federal agencies to identify eligible low-income individuals.
(e)
Audits— The Secretary of the Treasury shall audit the State use of grants under this section to ensure such uses comply with the requirements of this section and with the uses identified by the State under subsection (d)(1)(B). The Secretary may withhold a grant under this section if the Secretary determines that a State has not complied with such requirements.
(f)
State— For purposes of this section, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands.
(g)
Appropriations— There are hereby appropriated such sums as necessary for making cost mitigation grants under this section.