1. Short title
This Act may be cited as the “Tariff Tax Credit Act of 2019”.
Tariff Tax Credit Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to establish a refundable tax credit to return revenue raised from tariffs against Chinese imports to the American people.
2. Refundable tariff rebate credit
In general— Subpart C of part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:
“36C. Tariff rebate 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 applicable amount for such taxable year.
“(b) Eligible individual
“(1) In general—For purposes of this section, the term eligible individual means an individual who, with respect to any taxable year ending with or within a calendar year, has filed a Federal income tax return not later than October 15 of the succeeding calendar year.
“(2) Exception—The term eligible individual shall not include, with respect to any taxable year—
“(A) any estate or trust,
“(B) any nonresident alien individual or any alien who is not authorized for employment in the United States, or
“(C) any individual who is a dependent for whom a deduction is allowable under section 151 to another taxpayer for such taxable year.
“(c) Applicable amount
“(1) Determination—Not later than March 1, 2020, and every 12 months thereafter, the Secretary shall—
“(A) determine the total amount collected pursuant to duties imposed on goods imported from the People’s Republic of China under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) during the preceding calendar year, and
“(B) estimate the number of eligible individuals that will file a Federal income tax return for the taxable year ending with or within the calendar year described in subparagraph (A).
“(2) Calculation
“(A) In general—For purposes of this section, the applicable amount for each taxable year shall be an amount equal to the quotient obtained by dividing—
“(i) the amount described in paragraph (1)(A) for the calendar year in which such taxable year ends, by
“(ii) the amount described in paragraph (1)(B) for such taxable year.
“(B) Rounding—Any amount determined under subparagraph (A) shall be rounded down to the next whole dollar amount.
“(3) Special rule—In the case of any taxable year beginning after December 31, 2018, and ending before January 1, 2020, the amount under paragraph (2)(A)(i) shall be equal to the sum of the amounts determined under paragraph (1)(A) for calendar years 2018 and 2019.”
Conforming amendments—
The table of sections for subpart C of part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following:
Section 6211(b)(4)(A) of such Code is amended by striking “and 36B, 168(k)(4)” and inserting “36B, and 36C”.
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting “36C,” after “36B,”.
Authorization of appropriations— There are authorized to be appropriated such sums as may be necessary to administer section 36C of the Internal Revenue Code of 1986 (as added by subsection (a)).
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2018.