Tariff Tax Credit Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2697 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. IN THE SENATE OF THE UNITED STATES OCTOBER 24, 2019 Mr. SCOTT of Florida introduced the following bill; which was read twice and referred to the Committee on Finance 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Tariff Tax Credit Act 4 of 2019’’. 5 SEC. 2. REFUNDABLE TARIFF REBATE CREDIT. 6 (a) IN GENERAL.—Subpart C of part IV of sub- 7 chapter A of chapter 1 of subtitle A of the Internal Rev- 8 VerDate Sep 11 2014 03:19 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2697.IS S2697 kjohnson on DSK79L0C42 with BILLS 2 •S 2697 IS enue Code of 1986 is amended by inserting after section 1 36B the following new section: 2 ‘‘SEC. 36C. TARIFF REBATE CREDIT. 3 ‘‘(a) IN GENERAL.—In the case of an eligible indi- 4 vidual, there shall be allowed as a credit against the tax 5 imposed by this subtitle for the taxable year an amount 6 equal to the applicable amount for such taxable year. 7 ‘‘(b) ELIGIBLE INDIVIDUAL.— 8 ‘‘(1) IN GENERAL.—For purposes of this sec- 9 tion, the term ‘eligible individual’ means an indi- 10 vidual who, with respect to any taxable year ending 11 with or within a calendar year, has filed a Federal 12 income tax return not later than October 15 of the 13 succeeding calendar year. 14 ‘‘(2) EXCEPTION.—The term ‘eligible indi- 15 vidual’ shall not include, with respect to any taxable 16 year— 17 ‘‘(A) any estate or trust, 18 ‘‘(B) any nonresident alien individual or 19 any alien who is not authorized for employment 20 in the United States, or 21 ‘‘(C) any individual who is a dependent for 22 whom a deduction is allowable under section 23 151 to another taxpayer for such taxable year. 24 ‘‘(c) APPLICABLE AMOUNT.— 25 VerDate Sep 11 2014 03:19 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2697.IS S2697 kjohnson on DSK79L0C42 with BILLS 3 •S 2697 IS ‘‘(1) DETERMINATION.—Not later than March 1 1, 2020, and every 12 months thereafter, the Sec- 2 retary shall— 3 ‘‘(A) determine the total amount collected 4 pursuant to duties imposed on goods imported 5 from the People’s Republic of China under sec- 6 tion 301 of the Trade Act of 1974 (19 U.S.C. 7 2411) during the preceding calendar year, and 8 ‘‘(B) estimate the number of eligible indi- 9 viduals that will file a Federal income tax re- 10 turn for the taxable year ending with or within 11 the calendar year described in subparagraph 12 (A). 13 ‘‘(2) CALCULATION.— 14 ‘‘(A) IN GENERAL.—For purposes of this 15 section, the applicable amount for each taxable 16 year shall be an amount equal to the quotient 17 obtained by dividing— 18 ‘‘(i) the amount described in para- 19 graph (1)(A) for the calendar year in 20 which such taxable year ends, by 21 ‘‘(ii) the amount described in para- 22 graph (1)(B) for such taxable year. 23 VerDate Sep 11 2014 03:19 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2697.IS S2697 kjohnson on DSK79L0C42 with BILLS 4 •S 2697 IS ‘‘(B) ROUNDING.—Any amount determined 1 under subparagraph (A) shall be rounded down 2 to the next whole dollar amount. 3 ‘‘(3) SPECIAL RULE.—In the case of any tax- 4 able year beginning after December 31, 2018, and 5 ending before January 1, 2020, the amount under 6 paragraph (2)(A)(i) shall be equal to the sum of the 7 amounts determined under paragraph (1)(A) for cal- 8 endar years 2018 and 2019.’’. 9 (b) CONFORMING AMENDMENTS.— 10 (1) The table of sections for subpart C of part 11 IV of subchapter A of chapter 1 of subtitle A of the 12 Internal Revenue Code of 1986 is amended by in- 13 serting after the item relating to section 36B the fol- 14 lowing: 15 ‘‘Sec. 36C. Tariff rebate credit.’’. (2) Section 6211(b)(4)(A) of such Code is 16 amended by striking ‘‘and 36B, 168(k)(4)’’ and in- 17 serting ‘‘36B, and 36C’’. 18 (3) Paragraph (2) of section 1324(b) of title 19 31, United States Code, is amended by inserting 20 ‘‘36C,’’ after ‘‘36B,’’. 21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 22 are authorized to be appropriated such sums as may be 23 necessary to administer section 36C of the Internal Rev- 24 enue Code of 1986 (as added by subsection (a)). 25 VerDate Sep 11 2014 03:19 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2697.IS S2697 kjohnson on DSK79L0C42 with BILLS 5 •S 2697 IS (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2018. 3 Æ VerDate Sep 11 2014 03:19 Oct 26, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S2697.IS S2697 kjohnson on DSK79L0C42 with BILLS