Section 1 Short title
This Act may be cited as the “Reducing External Monetary International Transfers To Advance National Capital Efficiency Act” or the “REMITTANCE Act”.
Reducing External Monetary International Transfers To Advance National Capital Efficiency Act
A BILL
To amend the Internal Revenue Code of 1986 to modify the excise tax on remittance transfers, and for other purposes.
Sec. 2 Modification of excise tax on remittance transfers
Excise tax increased— Section 4475(a) of the Internal Revenue Code of 1986 is amended by striking “1 percent” and inserting “25 percent”.
Removal of limitations on excise tax— Section 4475 of such Code is amended by striking subsections (c) through (e), by redesignating subsection (f) as subsection (d), and by inserting after subsection (b) the following new subsection:
“(c) Definitions—For purposes of this section, the terms remittance transfer, remittance transfer provider, and sender shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–1(g)).”
Technical amendment— Section 4475(b)(2) of such Code is amended by striking the comma at the end and inserting a period.
Effective date— The amendments made by this section shall take effect as if included in section 70604 of Public Law 119–21.
Excise tax used for deficit reduction— Amounts received under section 4475(a) of the Internal Revenue Code of 1986 (as amended by this section) shall be deposited in the general fund of the Treasury for the sole purpose of deficit reduction.
Sec. 3 Establishment of refundable tax credit for excise tax paid on certain remittance transfers by citizens of the United States
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 36B the following new section:
“36C. Excise tax paid on certain remittance transfers by citizens of the United States
“(a) In general—In the case of any individual who is a citizen of the United States, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the aggregate amount of tax paid by such individual under section 4475(b)(1) for business or travel purposes (as determined by the Secretary) during such taxable year.
“(b) Regulations—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.”
Conforming amendments—
Section 6211(b)(4)(A) of such Code is amended by inserting “36C,” after “36B,”.
Section 1324(b)(2) 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:
Effective date— The amendments made by this section shall apply with respect to taxable years ending after the date of the enactment of this Act.