BOOST Act of 2021
Bill: H.R.6051 | Sponsor: Rep. Tlaib, Rashida (D-MI)
Policy area: Taxation

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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Building Our Opportunities to 
Survive and Thrive Act of 2021'' or the ``BOOST Act of 2021''.

SEC. 2. ESTABLISHMENT OF MIDDLE CLASS TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36 the following new section:

``SEC. 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' for 
        `$30,000' in subparagraph (A) thereof.
            ``(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' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(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' means an 
        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' shall not include any individual who 
        is a nonresident alien individual for any portion of the 
        preceding taxable year, unless such individual is treated for 
        such taxable year as a resident of the United States for 
        purposes of this chapter by reason of an election under 
        subsection (g) or (h) of section 6013.
            ``(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' means any 
        period of active duty pursuant to a call or order to such duty 
        for a period in excess of 90 days or for an indefinite period.
    ``(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 of the Internal Revenue Code of 
        1986 is amended by inserting after section 7527A the following 
        new section:

``SEC. 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, the Secretary shall establish a program for making advance 
payments of the credit allowed under section 36A on a monthly basis 
(determined without regard to subsection (f) of such section) to any 
taxpayer who--
            ``(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' means the 12-month period from the 
        month of July of the taxable year through the month of June of 
        the subsequent taxable year.
    ``(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 of the Internal Revenue Code of 
1986 (as added by this section) shall not be taken into account as 
income and shall not be taken into account as resources for purposes of 
determining the eligibility of such individual or any other individual 
for benefits or assistance, or the amount or extent of benefits or 
assistance, under any Federal program or under any State or local 
program financed in whole or in part with Federal funds.
    (d) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``36A,'' after ``36,''.
            (2) Section 6213(g)(2) of such Code is amended--
                    (A) in subparagraph (F), by inserting ``or section 
                36A'' after ``credit)'',
                    (B) in subparagraph (G), by inserting ``or 36A'' 
                after ``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,'' 
                after ``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.

SEC. 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, with the exception of 
        any provisions or amendments under such Public Law that provide 
        relief to taxpayers with less than $100,000 in annual income; 
        and
            (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.
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