Consumers REBATE Act

To amend the Internal Revenue Code of 1986 to impose a tax on coal, oil, and natural gas, and for other purposes. 1. Short title This Act may be cited as the Consumers Rebate to ban Emissions and Boost AlTernative Energy Act Consumers REBATE Act 2. Excise tax on carbon dioxide content of coal, oil, and natural gas (a) In general The Internal Revenue Code of 1986 is amended by adding at the end the following: L Carbon dioxide content of coal, oil, and natural gas Sec. 9901. Imposition of tax. Sec. 9902. Carbon equivalency fee. Sec. 9903. Definitions. Sec. 9904. Special rules. 9901. Imposition of tax (a) In general There is hereby imposed a tax on producing at the wellhead or mine in the United States, or importing, a taxable carbon substance. (b) Rate of tax (1) In general The tax imposed under subsection (a) shall be the applicable amount per ton of carbon dioxide content of the life-cycle emissions from the taxable carbon substance. (2) Applicable amount For purposes of paragraph (1)— (A) For calendar year 2016, the term applicable amount (B) For a calendar year after 2016, the term applicable amount (3) Target attainment year (A) In general For any calendar year that is a target attainment year, paragraph (2)(B) shall be applied by substituting zero dollars $15 (B) Target attainment year For purposes of subparagraph (A), the term target attainment year (c) By whom paid The tax imposed by subsection (a) shall be paid by the producer, miner, or importer of the taxable carbon substance. (d) Regulations The Secretary shall issue such regulations as may be necessary or appropriate to carry out this subtitle, including regulations relating to the timely and efficient issuance of permits and collection of payments for such permits. 9902. Carbon equivalency fee (a) Purpose The purpose of this section is to ensure the environmental effectiveness of this subtitle. (b) Imports The Secretary shall impose carbon equivalency fees to be collected by the Commissioner responsible for U.S. Customs and Border Control on imports of goods containing or produced using a taxable carbon substance. The amount of the carbon equivalency fee with respect to the import of any good shall be equal to the cost that domestic producers of a comparable good incur as a result of— (1) the tax imposed under section 9901, and (2) carbon equivalency fees imposed under this subsection on any goods used in the production of such good. (c) Expiration This section shall cease to have effect at such time as and to the extent that— (1) an international agreement requiring countries that emit carbon dioxide or produce goods containing or using taxable carbon substances to adopt equivalent measures comes into effect, or (2) the country of export has implemented equivalent measures, as determined by the Secretary, in consultation with the Secretary of State. 9903. Definitions For purposes of this subtitle— (1) Taxable carbon substance The term taxable carbon substance (A) coal, (B) oil, and (C) natural gas. (2) Coal The term coal (3) Oil The term oil (4) Natural gas The term natural gas (5) Life-cycle emissions The term life-cycle emissions (6) United States The term United States 9904. Special rules (a) Export For purposes of this subtitle— (1) In general No tax shall be imposed under section 9901 on the production or mining of a taxable carbon substance which is intended for export, including the sale or resale by a purchaser to a second purchaser for export. (2) Proof of export required Rules similar to the rules of section 4221(b) shall apply for purposes of paragraph (1). (3) Credit or refund where tax paid (A) In general Except as provided in subparagraph (B), if— (i) tax under section 9901 was paid with respect to any taxable carbon substance, and (ii) (I) such substance was exported by any person, or (II) such substance was used as a material in the manufacture or production of a substance which was exported by any person and which, at the time of export, was a taxable carbon substance (as defined in section 9902(1)), credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax. (B) Condition to allowance No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he— (i) has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance (as so defined), or (ii) has obtained the written consent of such exporter to the allowance of the credit or the making of the refund. (4) Refunds directly to exporter The Secretary shall provide, in regulations, the circumstances under which a credit or refund (without interest) of the tax under section 9901 shall be allowed or made to the person who exported the taxable carbon substance, where— (A) the person who paid the tax waives his claim to the amount of such credit or refund, and (B) the person exporting the taxable carbon substance provides such information as the Secretary may require in such regulations. (5) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection. . (b) Quarterly payments to Eligible Individuals (1) In general From amounts deposited in the Treasury of the United States pursuant to section 9901 (2) Quarterly payment For purposes of paragraph (1), the amount of each payment with respect to an eligible individual shall be the amount determined by the Secretary by dividing— (A) for the years 2017 through 2026— (i) the total amount deposited in the Treasury of the United States pursuant to section 9901 (ii) the total number of eligible individuals for such preceding calendar quarter, and (B) for year 2027 and subsequent years— (i) the smaller of— (I) the average of the total amounts deposited in the Treasury of the United States pursuant to section 9901 (II) the total amount deposited in the Treasury of the United States pursuant to section 9901 (ii) the total number of eligible individuals for such preceding calendar quarter. (3) Eligible individual For purposes of this subsection, the term eligible individual (4) United States For purposes of this subsection, the term United States (c) Conforming and clerical amendments (1) The table of subtitles for the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Subtitle L. Carbon dioxide content of coal, oil, and natural gas . (d) Effective date The amendments made by this section shall take effect on January 1, 2017.

Summary: Consumers Rebate to ban Emissions and Boost AlTernative Energy Act or the Consumers REBATE Act This bill amends the Internal Revenue Code to impose as of January 1, 2017, an excise tax on the production or importation of a taxable carbon substance (i.e., coal, oil, and natural gas), payable by the producer, miner, or importer of such substance. The tax does not apply to exports of a taxable carbon substance. The bill requires the Department of the Treasury to: (1) impose carbon equivalency fees on imports of goods containing or produced using a taxable carbon substance; and (2) make quarterly payments, from the amounts deposited pursuant to imposition of the carbon excise tax, to lawful residents of the United States with a valid social security number.