(a) Short title

This Act may be cited as the American Worker Rebate Act of 2025.

(b) Statement of Policy

It is the policy of the United States to use revenue raised from tariffs applied on foreign imports to provide relief for working people through immediate tax rebates.

(a) In general

Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 6428B the following new section:

6428C. Tariff rebates for individuals

(a) In general

(1) Amount of rebate

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2025 an amount equal to the sum of—

(A)

the applicable amount (or, in the case of eligible individuals filing a joint return, 200 percent of the applicable amount), plus

(B)

an amount equal to the product of the applicable amount multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.

(2) Applicable amount

(A) In general

For purposes of paragraph (1), the applicable amount shall be equal to the greater of—

(i)

$600, or

(ii)

an amount (rounded to the nearest dollar) equal to the quotient of—

(I)

the amount of qualifying tariff proceeds received during such taxable year, divided by

(II)

the total number of eligible individuals and qualifying children (as so defined) of such individuals for such taxable year.

(B) Qualifying tariff proceeds

(i) In general

For purposes of this subsection, the term qualifying tariff proceeds means the revenues received in the general fund of the Treasury which are attributable to duties, including any supplemental duties, imposed after January 20, 2025.

(ii) Projection of proceeds

For purposes of the application of subsection (f), in determining the amount described in paragraph (2)(A)(ii)(I), the Secretary may use projections and forecasts for annual tariff revenue based on a receipt to date in each taxable year.

(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) Limitation based on adjusted gross income

The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—

(1)

$150,000 in the case of a joint return,

(2)

$112,500 in the case of a head of household, and

(3)

$75,000 in the case of a taxpayer not described in paragraph (1) or (2).

(d) Eligible individual

For purposes of this section, the term eligible individual means any 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.

(e) Coordination with advance refunds of credit

(1) In general

The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). 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

In the case of a refund or credit made or allowed under subsection (f) 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.

(f) Advance refunds and credits

(1) In general

Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2024 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.

(2) Advance refund amount

For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year.

(3) Timing and manner of payments

(A) Timing

The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2026.

(B) Delivery of payments

Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to any account to which the payee authorized, on or after January 1, 2023, the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31, United States Code).

(C) Waiver of certain rules

Notwithstanding section 3325 of title 31, United States Code, or any other provision of law, with respect to any payment of a refund under this subsection, a disbursing official in the executive branch of the United States Government may modify payment information received from an officer or employee described in section 3325(a)(1)(B) of such title for the purpose of facilitating the accurate and efficient delivery of such payment. Except in cases of fraud or reckless neglect, no liability under sections 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed with respect to payments made under this subparagraph.

(4) No interest

No interest shall be allowed on any overpayment attributable to this section.

(5) Alternate taxable year

In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may—

(A)

apply such paragraph by substituting 2023 for 2024, and

(B)

if the individual has not filed a tax return for such individual’s first taxable year beginning in 2023, use information with respect to such individual for calendar year 2024 provided in—

(i)

Form SSA–1099, Social Security Benefit Statement, or

(ii)

Form RRB–1099, Social Security Equivalent Benefit Statement.

(6) Notice to taxpayer

Not later than 15 days after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, notice shall be sent by mail to such taxpayer'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.

(g) Identification number requirement

(1) In general

No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year—

(A)

such individual’s valid identification number,

(B)

in the case of a joint return, the valid identification number of such individual’s spouse, and

(C)

in the case of any qualifying child taken into account under subsection (a)(2), the valid identification number of such qualifying child.

(2) Valid identification number

(A) In general

For purposes of paragraph (1), the term valid identification number means a social security number (as such term is defined in section 24(h)(7)).

(B) Adoption taxpayer identification number

For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted or placed for adoption, the term valid identification number shall include the adoption taxpayer identification number of such child.

(3) Special rule for members of the Armed Forces

Paragraph (1)(B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and at least 1 spouse satisfies paragraph (1)(A).

(4) Mathematical or clerical error authority

Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.

(h) Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including any such measures as are deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer.

(b) Administrative amendments

(c) Treatment of possessions

(d) Exception from reduction or offset

Any credit or refund allowed or made to any individual by reason of section 6428C of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (c) of this section shall not be—

(e) Public awareness campaign

The Secretary of the Treasury (or the Secretary's delegate) shall conduct a public awareness campaign, in coordination with the Commissioner of Social Security and the heads of other relevant Federal agencies, to provide information regarding the availability of the credit and rebate allowed under section 6428C of the Internal Revenue Code of 1986 (as added by this section), including information with respect to individuals who may not have filed a tax return for taxable year 2023 or 2024.

(f) Conforming amendments