(a) In general

Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

6436. Individual tariff refund credit

(a) In general

In the case of an eligible individual, there shall be allowed a credit against the tax imposed by subtitle A for the covered taxable year in an amount equal to the applicable tariff refund amount.

(b) Treatment of credit

The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.

(c) Eligible individual

For purposes of this section, the term eligible individual means any individual who, on the date on which any covered court order is issued, is an 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)

an estate or trust.

(d) Covered taxable year

For purposes of this section, the term covered taxable year means, with respect to an individual, the most recent taxable year of such individual ending before the date on which a covered court order is issued.

(e) Covered court order

(1) In general

For purposes of this section, the term covered court order means a final court order which requires the Federal Government to repay tariff revenues collected pursuant to an unlawfully imposed tariff.

(2) Unlawful tariff

For purposes of paragraph (1), the term unlawful tariff means a tariff imposed unlawfully after January 20, 2025, and before the date of the enactment of this section.

(f) Covered tariff revenues

For purposes of this section, the term covered tariff revenues means the aggregate amount of tariff revenues required to be repaid by the Federal Government pursuant to a covered court order.

(g) Applicable tariff refund amount

(1) In general

For purposes of subsection (a), the term applicable tariff refund amount means, with respect to any individual, an amount equal to—

(A)

the individual tariff refund amount, multiplied by

(B)

the number of individuals in such individual’s household.

(2) Household

For purposes of this subsection, the number of individuals in an individual’s household for any taxable year is equal to the sum of—

(A)

1 (2 in the case of a joint return), plus

(B)

the number of dependents of the individual for such taxable year.

(3) Individual tariff refund amount

The term tariff refund amount means the amount that the Secretary determines is equal to the quotient of—

(A)

the aggregate amount of covered tariff revenues, divided by

(B)

the aggregate number of individuals in the households of eligible individuals.

(h) Coordination with advance refund of credit

(1) Reduction of refundable credit

The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the individual (or, except as otherwise provided by the Secretary, any dependent of the individual) under subsection (i). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

(2) Joint returns

Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (i) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

(i) Advanced payment

(1) In general

Each eligible individual shall be treated as having made a payment against the tax imposed by chapter 1 for the covered taxable year in an amount equal to the amount of the credit allowed to such individual under subsection (a) for such covered taxable year.

(2) Timing of payment

The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible.

(3) No interest

No interest shall be allowed on any overpayments attributable to this subsection.

(4) Notice to taxpayer

Not later than 15 days after the date on which the Secretary distributed any payment to an eligible individual pursuant to this subsection, notice shall be sent by mail to such individual’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.

(b) Definition of deficiency

Section 6211(b)(4)(A) of such Code is amended by striking and 6433 and inserting 6433, and 6436.

(c) Treatment of certain possessions

(d) Clerical amendment

The table of sections for subchapter B of chapter 65 of subtitle F of such Code is amended by adding at the end the following new item:

(e) Conforming amendment

Section 1324(b)(2) of title 31, United States Code, is amended by striking or 7527A and inserting 7527A, or 6436.

(f) Effective date

The amendments made by this sections shall apply to taxable years beginning after December 31, 2024.

(a) In general

Chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

I Excise Tax on Certain Tariff Refunds

4969. Excise tax on certain tariff refunds

(a) In general

There is hereby imposed on each covered taxpayer for the taxable year a tax in an amount equal to 100 percent of the non-qualifying tariff refunds received by such taxpayer.

(b) Exception for costs not passed On to consumers

(1) In general

Subsection (a) shall not apply with respect to a covered taxpayer if such taxpayer can demonstrate that any increase in price of products sold by the taxpayer during the covered period did not exceed 50 percent of the amount of the tariffs imposed on such products on any input used by the taxpayer to produce such products.

(2) Covered period

For purposes of paragraph (1), the term covered period means the period beginning on January 20, 2025, and ending on the date on which a covered court order is issued.

(3) Treatment of price increases attributable to inflation

For purposes of paragraph (1), the amount of the increase in the retail price of any product shall be determined without regard to so much of such increase as is attributable to inflation.

(c) Definitions

For purposes of this section—

(1) Covered court order

The term covered court order has the meaning given such term in section 6436.

(2) Covered taxpayer

The term covered taxpayer means a corporation or taxpayer which does not meet the gross receipts test of section 448(c), determined by substituting $1,000,000,000 for $25,000,000 in paragraph (1) thereof.

(3) Non-qualifying tariff refund

For purposes of this section, the term non-qualifying tariff refund means a repayment made pursuant to a covered court order of tariff revenues which were collected from the taxpayer in the course of the trade or business of such taxpayer.

(b) Clerical amendment

The table of subchapters for chapter 42 of such Code is amended by adding at the end the following new item:

(c) Effective date

The amendments made by this section shall apply to amounts received after December 31, 2025.