To direct the Secretary of Commerce to establish a program under which preloaded debit cards are made available for the purchase of certain goods and services.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Stimulus, Tax Credit Act of 
2012''.

SEC. 2. DEBIT CARD STIMULUS PROGRAM.

    (a) In General.--The Secretary of Commerce, in consultation with 
the Secretary of the Treasury, shall establish a debit card stimulus 
program, under which the Secretary of Commerce shall issue pre-loaded 
debit cards to eligible taxpayers.
    (b) Amount on Debit Card.--The amount loaded on a debit card 
pursuant to subsection (a) shall be the sum of--
            (1)(A) $5,000 in the case of an eligible taxpayer who filed 
        a joint return for the first taxable year beginning in 2011, 
        and
            (B) $3,000 in the case of an eligible taxpayer who filed an 
        individual return of income tax for the first taxable year 
        beginning in 2011, plus
            (2) $500 only in the case of an eligible taxpayer who uses 
        the debit card to acquire an automobile subject to subsection 
        (f)(5).
    (c) Eligibility.--
            (1) A taxpayer is eligible if the taxpayer is a citizen of 
        the United States and the gross income of the taxpayer for 
        taxable year 2011 does not exceed the applicable limit.
            (2)(A) For taxpayers filing a joint income tax return the 
        applicable limit is the sum of $75,000, plus the phaseout 
        amount.
            (B) For taxpayers filing an individual tax return the 
        applicable limit is the sum of $50,000, plus the phaseout 
        amount.
    (d) Phaseout Amount.--The phaseout amount shall be $4,999 less 20% 
of that amount for each thousand dollars in gross income above the 
eligible gross income amounts of $75,000 and $50,000 respectively, 
resulting in no eligibility at income levels of $80,000 and $55,000 
respectively.
    (e) Gross Income.--The term ``gross income'' has the meaning given 
such term by Section 61 of the Internal Revenue Code of 1986.
    (f) Debit Card Stimulus Program.--For purposes of this section, the 
debit card stimulus program established under subsection (a) is a 
program which shall be subject to the following terms and conditions:
            (1) The debit card is active for a 6-month period. Any 
        amount remaining on the debit card at the end of the 6-month 
        period is forfeited.
            (2) The debit card ceases to be active when the balance on 
        the card is zero.
            (3) An active debit card is issued to the eligible 
        taxpayer. In the case of a joint return, an active debit card 
        is issued to the taxpayer and a debit card is issued to the 
        spouse of the taxpayer, with the total dollar amount preloaded 
        on both cards jointly equaling the $5,000/$5,500 limit.
            (4) The debit card may be used for the following types of 
        purchases:
                    (A) Durable goods.
                    (B) Clothes.
                    (C) Services (other than medical services and 
                business-related legal services) performed within the 
                United States.
                    (D) Residential home mortgage payments where the 
                debtor is at least three months in arrears, as of the 
                effective date of this Act. This shall be limited by 
                regulation to a specific portion of the funds provided 
                under this Act.
            (5) A debit card may only be used for the acquisition of a 
        passenger automobile if--
                    (A) the original use of the automobile begins with 
                the taxpayer,
                    (B) the acquisition is by way of an 18-month 
                renewable (at the lessee's option) lease, and
                    (C) the automobile was manufactured in the United 
                States by a manufacturer if the headquarters of the 
                parent of the manufacturer (as of December 31, 2008) is 
                either--
                            (i) located in the United States, or
                            (ii) located in a country which the 
                        Secretary of Commerce has certified has opened 
                        its markets to all automobiles manufactured in 
                        the United States.
        For purposes of this paragraph, the term ``passenger 
        automobile'' has the meaning given such term by section 
        32901(a)(18) of title 49, United States Code.
            (6) The debit card may not be used for any purchase of a 
        good or service, or the acquisition of a passenger automobile 
        under a lease, if the cost of such good, service, or lease is 
        greater than the amount provided under the debit card stimulus 
        program.
            (7) Not more than one-third of the amount on the debit card 
        may be expended within any 2-month period unless the 
        expenditure is for the acquisition of a single good, service, 
        or lease.
            (8) Acquisitions after the effective date of the debit card 
        stimulus program (but prior to its implementation) shall be 
        reimbursable under the program, as follows:
                    (A) The sales receipt relating to the acquisition 
                shall be presented to the merchant who provided the 
                goods or services.
                    (B) The merchant would place those acquisitions on 
                the debit card once the program is fully implemented.
            (9) The program shall be subject to such other terms and 
        conditions as the Secretary of Commerce shall specify by 
        regulations.
    (g) Eligible Taxpayers.--For purposes of this section--
            (1) In general.--A taxpayer is an eligible taxpayer if the 
        taxpayer is a citizen of the United States.
            (2) Dependents not eligible.--An individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for the most recent taxable year for which a return is 
        required (but for any threshold amount) to be filed shall not 
        be treated as an eligible taxpayer for purposes of this 
        section.
            (3) Special rule relating to prisoners.--An individual may 
        not use a debit card issued pursuant to this section during any 
        period of incarceration in a Federal, State, or local prison.
    (h) Employee Retention Tax Credit.--
            (1) In general.--There shall be allowed to the employer of 
        any qualified retained employee a credit against the tax 
        imposed by chapter 1 of the Internal Revenue Code of 1986 in 
        the amount of the employee retention credit.
            (2) Employee retention credit.--
                    (A) In general.--For purposes of paragraph (1), the 
                employee retention credit for the taxable year of the 
                employer which includes the last day of the employee 
                retention period is an amount equal to the excess (if 
                any) of--
                            (i) $3,000 multiplied by the number of 
                        qualified retained employees, less
                            (ii) $3,000 multiplied by the number of 
                        specified dismissed employees.
                    (B) Increase in credit amount.--The $3,000 amount 
                in subparagraph (A)(i) shall be increased to the 
                highest level that the Secretary of the Treasury 
                determines would not cause the aggregate amount of the 
                credits allowed by paragraph (1) to be a revenue loss 
                to the Treasury. For purposes of this subparagraph, the 
                determination shall be based on--
                            (i) the amount of Federal income tax 
                        withheld from each qualified retained employee 
                        during the period of employment under the 
                        program and the employee retention period, and
                            (ii) all unemployment benefits which that 
                        employee would have continued to receive during 
                        the period of employment under the program and 
                        the employee retention period had that employee 
                        not been employed.
            (3) Qualified retained employee.--For purposes of paragraph 
        (1), an employee is a qualified retained employee if the 
        employee--
                    (A) whose hiring date with the employer is after 
                the beginning of the debit card stimulus program and 
                who first begins work before the end of the program, 
                and
                    (B) who, without a break in service, performs 
                services in the United States for the employer for the 
                employee retention period.
            (4) Employee retention period.--For purposes of this 
        subsection, the employee retention period is the 6-month period 
        beginning on the day after the end of the debit card stimulus 
        program.
            (5) Specified dismissed employee.--For purposes of 
        paragraph (1), an employee is a specified dismissed employee of 
        an employer if--
                    (A) the employee was performing services in the 
                United States for the employer before the beginning of 
                the debit card stimulus program, and
                    (B) the employee was separated from service during 
                the 12-month period beginning on the first day of the 
                program.
            (6) Employee.--For purposes of this subsection, an employee 
        shall not be taken into account for purposes of this subsection 
        unless the employee typically performs not less than 35 hours 
        of service (or the equivalent thereof) for the employer. For 
        purposes of the preceding sentence, the term ``hour of 
        service'' means a time of service determined under regulations 
        prescribed by the Secretary of Labor.
            (7) Business credit.--The credit allowed under paragraph 
        (1) shall be treated as a business credit allowed under subpart 
        D of part IV of subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986.
    (i) Regulations.--The Secretary of the Treasury or the Secretary's 
delegate shall issue such regulations as may be necessary to carry out 
this Act.

SEC. 3. APPROPRIATIONS.

    (a) Excess Funds From Operation Enduring Freedom.--Funds made 
available to the Department of Defense for Overseas Contingency 
Operations that are in excess of the amounts required by the Department 
for Operation Enduring Freedom because of the redeployment of members 
of the Armed Forces of the United States from Afghanistan are hereby 
made available to carry out this Act.
    (b) Repatriation of Foreign Earnings.--The amount equal to the 
taxes received in the Treasury of the United States pursuant to any 
provision of law enacted pursuant to an Act of Congress enacted after 
the date of the enactment of this Act which provides for a reduced tax 
rate on profits held outside the United States by domestic corporations 
upon the return of such funds to the United States.

Summary: Economic Stimulus, Tax Credit Act of 2012 - Directs the Secretary of Commerce to establish a debit card stimulus program for issuing pre-loaded six-month debit cards to eligible taxpayers.

Prescribes the amount on the debit card to be the sum of: (1) $5,000 for a taxpayer who filed a joint income tax return for the first taxable year beginning in 2011; (2) $3,000 for a taxpayer who filed an individual income tax return for the same taxable year; plus (3) $500, but only if the taxpayer uses the debit card to acquire a new U.S.-manufactured passenger automobile by way of an 18-month lease (renewable at the lessee's option).

Limits a debit card to taxpaying U.S. citizens whose gross income does not exceed $50,000 ($75,000 for those filing joint returns), plus a phaseout amount calculated according to a specified formula. Excludes individuals claimed as dependents on another taxpayer's income tax return.

Allows use of the debit card to purchase durable goods, clothes, services (other than medical and business-related legal services) performed within the United States, and the residential home mortgage payments of a debtor at least three months in arrears.

Prohibits the use of a debit card for any purchase of a good or service, or the acquisition of a passenger automobile under a lease, if its cost is greater than the amount provided under the debit card stimulus program.

Prescribes certain other restrictions on the use of a debit card.

Allows an income tax employee retention credit to an employer of any qualified retained employee: (1) whose hiring date with the employer follows the beginning of the debit card stimulus program and who first begins work before the end of the program; and (2) who, without a break in service, performs services in the United States for the employer for the six months following the end of the debit card stimulus program (employee retention period).

Sets the amount of an employee retention credit at the excess (if any) of: (1) $3,000 multiplied by the number of qualified retained employees, minus (2) $3,000 multiplied by the number of specified dismissed employees.

Makes available to carry out this Act any funds made available to the Department of Defense (DOD) for Overseas Contingency Operations in excess of the amounts required by DOD for Operation Enduring Freedom because of the redeployment of members of the U.S. Armed Forces from Afghanistan.