BOOST Act of 2021

To amend the Internal Revenue Code of 1986 to establish a refundable tax credit to increase the take-home pay of American workers and enhance their financial stability, and for other purposes. 1. Short title This Act may be cited as the Building Our Opportunities to Survive and Thrive Act of 2021 BOOST Act of 2021 2. Establishment of middle class tax credit (a) In general Subpart C of part IV of subchapter A of chapter 1 36A. Middle class tax credit (a) Allowance of credit (1) In general In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to $3,000. (2) Phaseout of credit The amount of the credit allowable to the taxpayer under paragraph (1) for the taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount of the credit determined under such paragraph as— (A) the amount (not less than zero) equal to the adjusted gross income of the taxpayer for the preceding taxable year minus $30,000, bears to (B) $20,000. (3) Joint returns (A) In general For purposes of determining the amount of the credit allowed under this section for any taxable year, if a joint return was filed for the preceding taxable year by an eligible individual and such individual's spouse, each of the dollar amounts under paragraphs (1) and (2) shall be doubled. (B) Married individuals For purposes of determining the amount of the credit allowed under this section for any taxable year, if an individual was married during the preceding taxable year (within the meaning of section 7703), this section shall apply only if a joint return was filed for the preceding taxable year under section 6013. (4) Head of household For purposes of determining the amount of the credit allowed under this section for any taxable year, if a taxpayer filed a return as a head of household for the preceding taxable year, the reduction of the credit allowable to the taxpayer under paragraph (1) shall be determined under paragraph (2) by substituting $80,000 $30,000 (5) Inflation adjustments (A) In general In the case of any taxable year after 2021, each of the dollar amounts under paragraphs (1), (2), and (4) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2020 calendar year 2016 (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. (b) Eligible individual For purposes of determining the credit allowed under this section for any taxable year— (1) In general The term eligible individual (A) who attained 18 years of age before the close of the preceding taxable year, (B) whose principal place of abode was in the United States for more than one-half of the preceding taxable year, (C) who was not a dependent for whom a deduction is allowable under section 151 to another taxpayer for any taxable year beginning in the same calendar year as the preceding taxable year, and (D) who did not claim the benefits of section 911 for the preceding taxable year. (2) Limitation on eligibility of nonresident aliens The term eligible individual (3) Identification number requirement No credit shall be allowed under this section to an eligible individual who does not include on the return of tax for the taxable year— (A) such individual's taxpayer identification number, and (B) if the individual was married during the preceding taxable year (within the meaning of section 7703), the taxpayer identification number of such individual's spouse. (4) Treatment of military personnel stationed outside of the United States For purposes of subparagraph (A)(ii), the principal place of abode of a member of the Armed Forces of the United States shall be treated as in the United States during any period during which such member is stationed outside the United States while serving on extended active duty with the Armed Forces of the United States. For purposes of the preceding sentence, the term extended active duty (c) Taxable year must be full taxable year Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months. (d) Restrictions on taxpayer who improperly claimed credit in prior year Rules similar to the rules of section 32(k) shall apply for purposes of this section. (e) Reconciliation of credit and advance payments The amount of the credit allowed under this section for any taxable year shall be reduced (but not below zero) by the aggregate amount of any advance payments of such credit under section 7527B for such taxable year. . (b) Advance payment of middle class tax credit (1) In general Chapter 77 7527B. Advance payment of middle class tax credit (a) In general Not later than 6 months after the date of the enactment of the Building Our Opportunities to Survive and Thrive Act of 2021 (1) the Secretary has determined will be allowed such credit for the taxable year, and (2) has made an election under subsection (c). (b) Amount of advance payment (1) In general For purposes of subsection (a), the amount of the monthly advance payment of the credit provided to a taxpayer during the applicable period shall be equal to the lesser of— (A) an amount equal to— (i) the amount of the credit which the Secretary has determined will be allowed to such taxpayer under section 36A for the taxable year ending in such applicable period, divided by (ii) 12, or (B) such other amount as is elected by the taxpayer. (2) Applicable period For purposes of this section, the term applicable period (c) Election of advance payment A taxpayer may elect to receive an advance payment of the credit allowed under section 36A for any taxable year by including such election on a timely filed return for the preceding taxable year. (d) Internal Revenue Service notification The Internal Revenue Service shall take such steps as may be appropriate to ensure that taxpayers who are eligible to receive the credit under section 36A are aware of the availability of the advance payment of such credit under this section. (e) Authority The Secretary may prescribe such regulations or other guidance as may be appropriate or necessary for the purposes of carrying out this section. . (c) Income disregard Any credit or refund allowed or made to any individual by reason of section 36A (d) Conforming amendments (1) Section 6211(b)(4)(A) 36A, 36, (2) Section 6213(g)(2) of such Code is amended— (A) in subparagraph (F), by inserting or section 36A credit) (B) in subparagraph (G), by inserting or 36A section 32 (C) by striking subparagraph (K) and inserting the following: (K) an omission of information required by section 32(k)(2) or 36(e) or an entry on the return claiming— (i) the credit under section 32 for a taxable year for which the credit is disallowed under subsection (k)(1) thereof, or (ii) the credit under section 36A for a taxable year for which the credit is disallowed under subsection (d) thereof, ; and (D) in subparagraph (L), by inserting 36A, 32, (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36 the following new item: Sec. 36A. Middle class tax credit. . (4) The table of sections for chapter 77 of such Code is amended by inserting after the item relating to section 7527A the following: Sec. 7527B. Advance payment of middle class tax credit. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. 3. Sense of the House of Representatives It is the sense of the House of Representatives that the costs of carrying out this Act and the amendments made by this Act should be fully offset through— (1) the repeal of Public Law 115–97 (2) a fee, in such amount as is determined appropriate by the Secretary of the Treasury for purposes of offsetting the costs of carrying out this Act and the amendments made by this Act, to be assessed on any financial institution that has total consolidated assets of more than $50,000,000,000.

Summary: Building Our Opportunities to Survive and Thrive Act of 2021 or the BOOST Act of 2021 This bill allows certain individual taxpayers a refundable income-based tax credit equal to $3,000 in a taxable year. It also directs the Internal Revenue Service to establish a program for making advance payments of such credit on a monthly basis.