To amend the Internal Revenue Code of 1986 to provide for additional recovery rebates for individuals, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 9050 To amend the Internal Revenue Code of 1986 to provide for additional recovery rebates for individuals, and for other purposes. IN THE HOUSE OF REPRESENTATIVES DECEMBER 24, 2020 Ms. TLAIB (for herself, Ms. JAYAPAL, Ms. PRESSLEY, and Ms. OMAR) intro- duced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide for additional recovery rebates for individuals, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. ADDITIONAL 2020 RECOVERY REBATES FOR IN- 3 DIVIDUALS. 4 (a) IN GENERAL.—Subchapter B of chapter 65 of 5 subtitle F is amended by inserting after section 6428 the 6 following new section: 7 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 9050 IH ‘‘SEC. 6428A. ADDITIONAL 2020 RECOVERY REBATES FOR IN- 1 DIVIDUALS. 2 ‘‘(a) IN GENERAL.—In addition to the credit allowed 3 under section 6428, in the case of an eligible individual, 4 there shall be allowed as a credit against the tax imposed 5 by subtitle A for the first taxable year beginning in 2020 6 an amount equal to the sum of— 7 ‘‘(1) $2,000 ($4,000 in the case of eligible indi- 8 viduals filing a joint return), plus 9 ‘‘(2) an amount equal to the product of $600 10 multiplied by the number of qualifying children 11 (within the meaning of section 24(c)) of the tax- 12 payer. 13 ‘‘(b) TREATMENT OF CREDIT.—The credit allowed by 14 subsection (a) shall be treated as allowed by subpart C 15 of part IV of subchapter A of chapter 1. 16 ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN- 17 COME.—The amount of the credit allowed by subsection 18 (a) (determined without regard to this subsection and sub- 19 section (e)) shall be reduced (but not below zero) by 5 20 percent of so much of the taxpayer’s adjusted gross in- 21 come as exceeds— 22 ‘‘(1) $150,000 in the case of a joint return or 23 a surviving spouse (as defined in section 2(a)), 24 ‘‘(2) $112,500 in the case of a head of house- 25 hold (as defined in section 2(b)), and 26 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 9050 IH ‘‘(3) $75,000 in the case of a taxpayer not de- 1 scribed in paragraph (1) or (2). 2 ‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 3 section, the term ‘eligible individual’ means any individual 4 other than— 5 ‘‘(1) any nonresident alien individual, 6 ‘‘(2) any individual with respect to whom a de- 7 duction under section 151 is allowable to another 8 taxpayer for a taxable year beginning in the cal- 9 endar year in which the individual’s taxable year be- 10 gins, and 11 ‘‘(3) an estate or trust. 12 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF 13 CREDIT.— 14 ‘‘(1) IN GENERAL.—The amount of the credit 15 which would (but for this paragraph) be allowable 16 under this section shall be reduced (but not below 17 zero) by the aggregate refunds and credits made or 18 allowed to the taxpayer under subsection (f). Any 19 failure to so reduce the credit shall be treated as 20 arising out of a mathematical or clerical error and 21 assessed according to section 6213(b)(1). 22 ‘‘(2) JOINT RETURNS.—Except as otherwise 23 provided by the Secretary, in the case of a refund 24 or credit made or allowed under subsection (f) with 25 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 9050 IH respect to a joint return, half of such refund or cred- 1 it shall be treated as having been made or allowed 2 to each individual filing such return. 3 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 4 ‘‘(1) IN GENERAL.—Each individual who was 5 an eligible individual for such individual’s first tax- 6 able year beginning in 2019 shall be treated as hav- 7 ing made a payment against the tax imposed by 8 chapter 1 for such taxable year in an amount equal 9 to the advance refund amount for such taxable year. 10 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur- 11 poses of paragraph (1), the advance refund amount 12 is the amount that would have been allowed as a 13 credit under this section for such taxable year if this 14 section (other than subsection (e) and this sub- 15 section) had applied to such taxable year. For pur- 16 poses of determining the advance refund amount 17 with respect to such taxable year— 18 ‘‘(A) any individual who was deceased be- 19 fore January 1, 2020, shall be treated for pur- 20 poses of applying subsection (g) in the same 21 manner as if the valid identification number of 22 such person was not included on the return of 23 tax for such taxable year, and 24 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 9050 IH ‘‘(B) no amount shall be determined under 1 this subsection with respect to any qualifying 2 child of the taxpayer if— 3 ‘‘(i) the taxpayer was deceased before 4 January 1, 2020, or 5 ‘‘(ii) in the case of a joint return, both 6 taxpayers were deceased before January 1, 7 2020. 8 ‘‘(3) TIMING AND MANNER OF PAYMENTS.— 9 ‘‘(A) TIMING.— 10 ‘‘(i) IN GENERAL.—The Secretary 11 shall, subject to the provisions of this title, 12 refund or credit any overpayment attrib- 13 utable to this subsection as rapidly as pos- 14 sible. 15 ‘‘(ii) DEADLINE.— 16 ‘‘(I) IN GENERAL.—Except as 17 provided in subclause (II), no refund 18 or credit shall be made or allowed 19 under this subsection after January 20 15, 2021. 21 ‘‘(II) EXCEPTION FOR MIRROR 22 CODE POSSESSIONS.—In the case of a 23 possession of the United States which 24 has a mirror code tax system (as such 25 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 9050 IH terms are defined in section 2(c) of 1 the COVID-related Tax Relief Act of 2 2020), no refund or credit shall be 3 made or allowed under this subsection 4 after the earlier of— 5 ‘‘(aa) such date as is deter- 6 mined appropriate by the Sec- 7 retary, or 8 ‘‘(bb) September 30, 2021. 9 ‘‘(B) DELIVERY OF PAYMENTS.—Notwith- 10 standing any other provision of law, the Sec- 11 retary may certify and disburse refunds payable 12 under this subsection electronically to— 13 ‘‘(i) any account to which the payee 14 authorized, on or after January 1, 2019, 15 the delivery of a refund of taxes under this 16 title or of a Federal payment (as defined 17 in section 3332 of title 31, United States 18 Code), 19 ‘‘(ii) any account belonging to a payee 20 from which that individual, on or after 21 January 1, 2019, made a payment of taxes 22 under this title, or 23 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 9050 IH ‘‘(iii) any Treasury-sponsored account 1 (as defined in section 208.2 of title 31, 2 Code of Federal Regulations). 3 ‘‘(C) WAIVER OF CERTAIN RULES.—Not- 4 withstanding section 3325 of title 31, United 5 States Code, or any other provision of law, with 6 respect to any payment of a refund under this 7 subsection, a disbursing official in the executive 8 branch of the United States Government may 9 modify payment information received from an 10 officer or employee described in section 11 3325(a)(1)(B) of such title for the purpose of 12 facilitating the accurate and efficient delivery of 13 such payment. Except in cases of fraud or reck- 14 less neglect, no liability under section 3325, 15 3527, 3528, or 3529 of title 31, United States 16 Code, shall be imposed with respect to pay- 17 ments made under this subparagraph. 18 ‘‘(4) NO INTEREST.—No interest shall be al- 19 lowed on any overpayment attributable to this sub- 20 section. 21 ‘‘(5) APPLICATION TO CERTAIN INDIVIDUALS 22 WHO DO NOT FILE A RETURN OF TAX FOR 2019.— 23 ‘‘(A) IN GENERAL.—In the case of a speci- 24 fied individual who, at the time of any deter- 25 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 9050 IH mination made pursuant to paragraph (3), has 1 not filed a tax return for the year described in 2 paragraph (1), the Secretary may use informa- 3 tion with respect to such individual which is 4 provided by— 5 ‘‘(i) in the case of a specified social 6 security beneficiary or a specified supple- 7 mental security income recipient, the Com- 8 missioner of Social Security, 9 ‘‘(ii) in the case of a specified railroad 10 retirement beneficiary, the Railroad Retire- 11 ment Board, and 12 ‘‘(iii) in the case of a specified vet- 13 erans beneficiary, the Secretary of Vet- 14 erans Affairs (in coordination with, and 15 with the assistance of, the Commissioner of 16 Social Security if appropriate). 17 ‘‘(B) SPECIFIED INDIVIDUAL.—For pur- 18 poses of this paragraph, the term ‘specified in- 19 dividual’ means any individual who is— 20 ‘‘(i) a specified social security bene- 21 ficiary, 22 ‘‘(ii) a specified supplemental security 23 income recipient, 24 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 9050 IH ‘‘(iii) a specified railroad retirement 1 beneficiary, or 2 ‘‘(iv) a specified veterans beneficiary. 3 ‘‘(C) SPECIFIED SOCIAL SECURITY BENE- 4 FICIARY.— 5 ‘‘(i) IN GENERAL.—For purposes of 6 this paragraph, the term ‘specified social 7 security beneficiary’ means any individual 8 who, for the last month for which the Sec- 9 retary has available information as of the 10 date of enactment of this section, is enti- 11 tled to any monthly insurance benefit pay- 12 able under title II of the Social Security 13 Act (42 U.S.C. 401 et seq.), including pay- 14 ments made pursuant to sections 202(d), 15 223(g), and 223(i)(7) of such Act. 16 ‘‘(ii) EXCEPTION.—For purposes of 17 this paragraph, the term ‘specified social 18 security beneficiary’ shall not include any 19 individual if such benefit is not payable for 20 such month by reason of section 21 202(x)(1)(A) of the Social Security Act 22 (42 U.S.C. 402(x)(1)(A)) or section 1129A 23 of such Act (42 U.S.C. 1320a–8a). 24 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 9050 IH ‘‘(D) SPECIFIED SUPPLEMENTAL SECU- 1 RITY INCOME RECIPIENT.— 2 ‘‘(i) IN GENERAL.—For purposes of 3 this paragraph, the term ‘specified supple- 4 mental security income recipient’ means 5 any individual who, for the last month for 6 which the Secretary has available informa- 7 tion as of the date of enactment of this 8 section, is eligible for a monthly benefit 9 payable under title XVI of the Social Secu- 10 rity Act (42 U.S.C. 1381 et seq.), includ- 11 ing— 12 ‘‘(I) payments made pursuant to 13 section 1614(a)(3)(C) of such Act (42 14 U.S.C. 1382c(a)(3)(C)), 15 ‘‘(II) payments made pursuant to 16 section 1619(a) (42 U.S.C. 1382h(a)) 17 or subsection (a)(4), (a)(7), or (p)(7) 18 of section 1631 (42 U.S.C. 1383) of 19 such Act, and 20 ‘‘(III) State supplementary pay- 21 ments of the type referred to in sec- 22 tion 1616(a) of such Act (42 U.S.C. 23 1382e(a)) (or payments of the type 24 described in section 212(a) of Public 25 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 9050 IH Law 93–66) which are paid by the 1 Commissioner under an agreement re- 2 ferred to in such section 1616(a) (or 3 section 212(a) of Public Law 93–66). 4 ‘‘(ii) EXCEPTION.—For purposes of 5 this paragraph, the term ‘specified supple- 6 mental security income recipient’ shall not 7 include any individual if such monthly ben- 8 efit is not payable for such month by rea- 9 son of section 1611(e)(1)(A) of the Social 10 Security Act (42 U.S.C. 1382(e)(1)(A)) or 11 section 1129A of such Act (42 U.S.C. 12 1320a–8a). 13 ‘‘(E) SPECIFIED RAILROAD RETIREMENT 14 BENEFICIARY.—For purposes of this para- 15 graph, the term ‘specified railroad retirement 16 beneficiary’ means any individual who, for the 17 last month for which the Secretary has avail- 18 able information as of the date of enactment of 19 this section, is entitled to a monthly annuity or 20 pension payment payable (without regard to 21 section 5(a)(ii) of the Railroad Retirement Act 22 of 1974 (45 U.S.C. 231d(a)(ii))) under— 23 ‘‘(i) section 2(a)(1) of such Act (45 24 U.S.C. 231a(a)(1)), 25 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 9050 IH ‘‘(ii) section 2(c) of such Act (45 1 U.S.C. 231a(c)), 2 ‘‘(iii) section 2(d)(1) of such Act (45 3 U.S.C. 231a(d)(1)), or 4 ‘‘(iv) section 7(b)(2) of such Act (45 5 U.S.C. 231f(b)(2)) with respect to any of 6 the benefit payments described in subpara- 7 graph (C)(i). 8 ‘‘(F) SPECIFIED VETERANS BENE- 9 FICIARY.— 10 ‘‘(i) IN GENERAL.—For purposes of 11 this paragraph, the term ‘specified vet- 12 erans beneficiary’ means any individual 13 who, for the last month for which the Sec- 14 retary has available information as of the 15 date of enactment of this section, is enti- 16 tled to a compensation or pension payment 17 payable under— 18 ‘‘(I) section 1110, 1117, 1121, 19 1131, 1141, or 1151 of title 38, 20 United States Code, 21 ‘‘(II) section 1310, 1312, 1313, 22 1315, 1316, or 1318 of title 38, 23 United States Code, 24 VerDate Sep 11 2014 05:12 Jan 19, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H9050.IH H9050 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 9050 IH ‘‘(III) section 1513, 1521, 1533, 1 1536, 1537, 1541, 1542, or 1562 of 2 title 38, United States Code, or 3 ‘‘(IV) section 1805, 1815, or 4 1821 of title 38, United States Code, 5 to a veteran, surviving spouse, child, or 6 parent as described in paragraph (2), (3), 7 (4)(A)(ii), or (5) of section 101, title 38, 8 United States Code. 9 ‘‘(ii) EXCEPTION.—For purposes of 10 this paragraph, the term ‘specified vet- 11 erans beneficiary’ shall not include any in- 12 dividual if such compensation or pension 13 payment is not payable, or was reduced, 14 for such month by reason of section 1505 15 or 5313 of title 38, United States Code. 16 ‘‘(G) SUBSEQUENT DETERMINATIONS AND 17 REDETERMINATIONS NOT TAKEN INTO AC- 18 COUNT.—For purposes of this section, any indi- [Text truncated for display. 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