To provide for energy rebates to individual taxpayers, and for other purposes.
Bill: H.R.7143 | Sponsor: Rep. Thompson, Mike (D-CA)
Policy area: Taxation

Summary:
This bill expresses the sense of Congress that energy rebates to individual taxpayers are required due to the global disruptions caused by COVID-19 and the Russian invasion of Ukraine.
The bill allows an income-based tax credit beginning in 2022 for the sum of monthly energy rebates. The amount of such rebates in any calendar month is the sum of $100 ($200 for married couples filing jointly) plus $100 multiplied by the number of the taxpayer's dependents during 2022.

To provide for energy rebates to individual taxpayers, 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. SENSE OF CONGRESS.

    It is the sense of Congress that energy rebates are necessitated by 
the global disruptions caused by both COVID-19 and the illegal Russian 
invasion of Ukraine.

SEC. 2. ENERGY REBATES TO INDIVIDUALS.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by inserting after section 6428B the following 
new section:

``SEC. 6428C. ENERGY REBATES TO INDIVIDUALS.

    ``(a) In General.--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 2022 the sum of the monthly 
specified energy rebates determined with respect to the taxpayer under 
subsection (b) for qualifying calendar months during such taxable year.
    ``(b) Monthly Specified Energy Rebates.--
            ``(1) In general.--For purposes of this section, the term 
        `monthly specified energy rebate' means, with respect to any 
        taxpayer for any qualifying calendar month, the sum of--
                    ``(A) $100 ($200 in the case of a joint return), 
                plus
                    ``(B) $100 multiplied by the number of dependents 
                of the taxpayer during taxable year 2022.
            ``(2) Limitation based on adjusted gross income.--
                    ``(A) In general.--The amount of the credit allowed 
                by subsection (a) (determined without regard to this 
                subsection and subsection (f)) shall be reduced (but 
                not below zero) by \1/12\ of the amount which bears the 
                same ratio to such credit (as so determined) as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $75,000, bears to
                            ``(ii) $5,000.
                    ``(B) Special rules.--
                            ``(i) Joint return or surviving spouse.--In 
                        the case of a joint return or a surviving 
                        spouse (as defined in section 2(a)), 
                        subparagraph (A) shall be applied by 
                        substituting `$150,000' for `$75,000' and 
                        `$10,000' for `$5,000'.
                            ``(ii) Head of household.--In the case of a 
                        head of household (as defined in section 2(b)), 
                        subparagraph (A) shall be applied by 
                        substituting `$112,500' for `$75,000' and 
                        `$7,500' for `$5,000'.
    ``(c) Qualifying Calendar Month.--For purposes of this section, the 
term `qualifying calendar month' means any month in 2022 during which 
the average price of gasoline in the United States is equal to or 
greater than $4 per gallon.
    ``(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) Definitions and Special Rules.--
            ``(1) Dependent defined.--For purposes of this section, the 
        term `dependent' has the meaning given such term by section 
        152.
            ``(2) Identification number requirement.--
                    ``(A) In general.--In the case of a return other 
                than a joint return, the $100 amount in subsection 
                (b)(1)(A) shall be treated as being zero unless the 
                taxpayer includes the valid identification number of 
                the taxpayer on the return of tax for the taxable year.
                    ``(B) Joint returns.--In the case of a joint 
                return, the $200 amount in subsection (b)(1)(B) shall 
                be treated as being--
                            ``(i) $100 if the valid identification 
                        number of only 1 spouse is included on the 
                        return of tax for the taxable year, and
                            ``(ii) zero if the valid identification 
                        number of neither spouse is so included.
                    ``(C) Dependents.--A dependent shall not be taken 
                into account under subsection (b)(1)(B) unless the 
                valid identification number of such dependent is 
                included on the return of tax for the taxable year.
                    ``(D) Valid identification number.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `valid identification 
                        number' means a social security number issued 
                        to an individual by the Social Security 
                        Administration on or before the due date for 
                        filing the return for the taxable year.
                            ``(ii) Adoption taxpayer identification 
                        number.--For purposes of subparagraph (C), in 
                        the case of a dependent who is adopted or 
                        placed for adoption, the term `valid 
                        identification number' shall include the 
                        adoption taxpayer identification number of such 
                        dependent.
                    ``(E) Special rule for members of the armed 
                forces.--Subparagraph (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 the valid identification number of at 
                least 1 spouse is included on the return of tax for the 
                taxable year.
                    ``(F) Coordination with certain advance payments.--
                In the case of any payment made pursuant to subsection 
                (g)(6), a valid identification number shall be treated 
                for purposes of this paragraph as included on the 
                taxpayer's return of tax if such valid identification 
                number is provided pursuant to such subsection.
                    ``(G) Mathematical or clerical error authority.--
                Any omission of a correct valid identification number 
                required under this paragraph shall be treated as a 
                mathematical or clerical error for purposes of applying 
                section 6213(g)(2) to such omission.
            ``(3) Credit treated as refundable.--The credit allowed by 
        subsection (a) shall be treated as allowed by subpart C of part 
        IV of subchapter A of chapter 1.
    ``(f) Coordination With Advance Refunds of Credit.--
            ``(1) Reduction of refundable credit.--The amount of the 
        credit which would (but for this paragraph) be allowable under 
        subsection (a) shall be reduced (but not below zero) by the 
        aggregate refunds and credits made or allowed to the taxpayer 
        (or any dependent of the taxpayer) under subsection (g). 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.--Except as otherwise provided by the 
        Secretary, in the case of a refund or credit made or allowed 
        under subsection (g) 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.
    ``(g) Advance Refunds and Credits.--
            ``(1) In general.--Subject to paragraphs (5) and (6), each 
        individual who was an eligible individual for such individual's 
        first taxable year beginning in 2020 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.--
                    ``(A) In general.--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 (f) 
                and this subsection) had applied to such taxable year.
                    ``(B) Treatment of deceased individuals.--For 
                purposes of determining the advance refund amount with 
                respect to such taxable year, any individual who was 
                deceased before January 1, 2022, shall be treated for 
                purposes of applying subsection (e)(3) in the same 
                manner as if the valid identification number of such 
                person was not included on the return of tax for such 
                taxable year and no amount shall be determined under 
                subsection (e)(3) with respect to any dependent of the 
                taxpayer if the taxpayer (both spouses in the case of a 
                joint return) was deceased before January 1, 2022.
            ``(3) Timing and manner of payments.--
                    ``(A) Timing.--The Secretary shall, subject to the 
                provisions of this title and consistent with rules 
                similar to the rules of subparagraphs (B) and (C) of 
                section 6428A(f)(3), refund or credit any overpayment 
                attributable to this subsection as rapidly as possible, 
                consistent with a rapid effort to make payments 
                attributable to such overpayments electronically if 
                appropriate. No refund or credit shall be made or 
                allowed under this subsection after December 31, 2022.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this subsection.
            ``(5) Application to individuals who have filed a return of 
        tax for 2021.--
                    ``(A) Application to 2021 returns filed at time of 
                initial determination.--If, at the time of any 
                determination made pursuant to paragraph (3), the 
                individual referred to in paragraph (1) has filed a 
                return of tax for the individual's first taxable year 
                beginning in 2021, paragraph (1) shall be applied with 
                respect to such individual by substituting `2021' for 
                `2020'.
                    ``(B) Additional payment.--
                            ``(i) In general.--In the case of any 
                        individual who files, before the additional 
                        payment determination date, a return of tax for 
                        such individual's first taxable year beginning 
                        in 2021, the Secretary shall make a payment (in 
                        addition to any payment made under paragraph 
                        (1)) to such individual equal to the excess (if 
                        any) of--
                                    ``(I) the amount which would be 
                                determined under paragraph (1) (after 
                                the application of subparagraph (A)) by 
                                applying paragraph (1) as of the 
                                additional payment determination date, 
                                over
                                    ``(II) the amount of any payment 
                                made with respect to such individual 
                                under paragraph (1).
                            ``(ii) Additional payment determination 
                        date.--The term `additional payment 
                        determination date' means the earlier of--
                                    ``(I) the date which is 90 days 
                                after the 2021 calendar year filing 
                                deadline, or
                                    ``(II) September 1, 2022.
                            ``(iii) 2021 calendar year filing 
                        deadline.--The term `2020 calendar year filing 
                        deadline' means the date specified in section 
                        6072(a) with respect to returns for calendar 
                        year 2021. Such date shall be determined after 
                        taking into account any period disregarded 
                        under section 7508A if such disregard applies 
                        to substantially all returns for calendar year 
                        2021 to which section 6072(a) applies.
            ``(6) Application to certain individuals who have not filed 
        a return of tax for 2020 or 2021 at time of determination.--In 
        the case of any individual who, at the time of any 
        determination made pursuant to paragraph (3), has filed a tax 
        return for neither the year described in paragraph (1) nor for 
        the year described in paragraph (5)(A), the Secretary shall, 
        consistent with rules similar to the rules of section 
        6428A(f)(5)(H)(i), apply paragraph (1) on the basis of 
        information available to the Secretary and shall, on the basis 
        of such information, determine the advance refund amount with 
        respect to such individual without regard to subsection (d) 
        unless the Secretary has reason to know that such amount would 
        otherwise be reduced by reason of such subsection.
            ``(7) Special rule related to time of filing return.--
        Solely for purposes of this subsection, a return of tax shall 
        not be treated as filed until such return has been processed by 
        the Internal Revenue Service.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including--
            ``(1) regulations or other guidance providing taxpayers the 
        opportunity to provide the Secretary information sufficient to 
        allow the Secretary to make payments to such taxpayers under 
        subsection (g) (including the determination of the amount of 
        such payment) if such information is not otherwise available to 
        the Secretary, and
            ``(2) regulations or other guidance to ensure to the 
        maximum extent administratively practicable that, in 
        determining the amount of any credit under subsection (a) and 
        any credit or refund under subsection (g), an individual is not 
        taken into account more than once, including by different 
        taxpayers and including by reason of a change in joint return 
        status or dependent status between the taxable year for which 
        an advance refund amount is determined and the taxable year for 
        which a credit under subsection (a) is determined.
    ``(i) Outreach.--The Secretary shall carry out a robust and 
comprehensive outreach program to ensure that all taxpayers described 
in subsection (h)(1) learn of their eligibility for the advance refunds 
and credits under subsection (g), are advised of the opportunity to 
receive such advance refunds and credits as provided under subsection 
(h)(1), and are provided assistance in applying for such advance 
refunds and credits.''.
    (b) Treatment of Certain Possessions.--
            (1) Payments to possessions with mirror code tax systems.--
        The Secretary of the Treasury shall pay to each possession of 
        the United States which has a mirror code tax system amounts 
        equal to the loss (if any) to that possession by reason of the 
        amendments made by this section. Such amounts shall be 
        determined by the Secretary of the Treasury based on 
        information provided by the government of the respective 
        possession.
            (2) Payments to other possessions.--The Secretary of the 
        Treasury shall pay to each possession of the United States 
        which does not have a mirror code tax system amounts estimated 
        by the Secretary of the Treasury as being equal to the 
        aggregate benefits (if any) that would have been provided to 
        residents of such possession by reason of the amendments made 
        by this section if a mirror code tax system had been in effect 
        in such possession. The preceding sentence shall not apply 
        unless the respective possession has a plan, which has been 
        approved by the Secretary of the Treasury, under which such 
        possession will promptly distribute such payments to its 
        residents.
            (3) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 6428C of the Internal Revenue Code 
        of 1986 (as added by this section), nor shall any credit or 
        refund be made or allowed under subsection (g) of such section, 
        to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of the amendments 
                made by this section, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (2).
            (4) Mirror code tax system.--For purposes of this 
        subsection, the term ``mirror code tax system'' means, with 
        respect to any possession of the United States, the income tax 
        system of such possession if the income tax liability of the 
        residents of such possession under such system is determined by 
        reference to the income tax laws of the United States as if 
        such possession were the United States.
            (5) Treatment of payments.--For purposes of section 1324 of 
        title 31, United States Code, the payments under this 
        subsection shall be treated in the same manner as a refund due 
        from a credit provision referred to in subsection (b)(2) of 
        such section
    (c) Administrative Provisions.--
            (1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``6428, 
        6428A, and 6428B'' and inserting ``6428, 6428A, 6428B, and 
        6428C''.
            (2) Mathematical or clerical error authority.--Section 
        6213(g)(2) of such Code is amended--
                    (A) by striking ``or section 6428A or 6428B 
                (relating to additional recovery rebates to 
                individuals)'' and inserting ``or section 6428A, 6428B, 
                or 6428C'', and
                    (B) by striking ``6428, 6428A, or 6428B'' and 
                inserting ``6428, 6428A, 6428B, or 6428C'' in 
                subparagraph (L).
            (3) 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 (b) of this section shall 
        not be--
                    (A) subject to reduction or offset pursuant to 
                section 3716 or 3720A of title 31, United States Code,
                    (B) subject to reduction or offset pursuant to 
                subsection (c), (d), (e), or (f) of section 6402 of the 
                Internal Revenue Code of 1986, or
                    (C) reduced or offset by other assessed Federal 
                taxes that would otherwise be subject to levy or 
                collection.
            (4) Assignment of benefits.--
                    (A) In general.--The right of any person to any 
                applicable payment shall not be transferable or 
                assignable, at law or in equity, and no applicable 
                payment shall be subject to, execution, levy, 
                attachment, garnishment, or other legal process, or the 
                operation of any bankruptcy or insolvency law.
                    (B) Encoding of payments.--In the case of an 
                applicable payment described in subparagraph 
                (E)(iii)(I) that is paid electronically by direct 
                deposit through the Automated Clearing House (ACH) 
                network, the Secretary of the Treasury (or the 
                Secretary's delegate) shall--
                            (i) issue the payment using a unique 
                        identifier that is reasonably sufficient to 
                        allow a financial institution to identify the 
                        payment as an applicable payment, and
                            (ii) further encode the payment pursuant to 
                        the same specifications as required for a 
                        benefit payment defined in section 212.3 of 
                        title 31, Code of Federal Regulations.
                    (C) Garnishment.--
                            (i) Encoded payments.--In the case of a 
                        garnishment order that applies to an account 
                        that has received an applicable payment that is 
                        encoded as provided in subparagraph (B), a 
                        financial institution shall follow the 
                        requirements and procedures set forth in part 
                        212 of title 31, Code of Federal Regulations, 
                        except--
                                    (I) notwithstanding section 212.4 
                                of title 31, Code of Federal 
                                Regulations (and except as provided in 
                                subclause (II)), a financial 
                                institution shall not fail to follow 
                                the procedures of sections 212.5 and 
                                212.6 of such title with respect to a 
                                garnishment order merely because such 
                                order has attached, or includes, a 
                                notice of right to garnish federal 
                                benefits issued by a State child 
                                support enforcement agency, and
                                    (II) a financial institution shall 
                                not, with regard to any applicable 
                                payment, be required to provide the 
                                notice referenced in sections 212.6 and 
                                212.7 of title 31, Code of Federal 
                                Regulations.
                            (ii) Other payments.--If a financial 
                        institution receives a garnishment order (other 
                        than an order that has been served by the 
                        United States), that has been received by a 
                        financial institution and that applies to an 
                        account into which an applicable payment that 
                        has not been encoded as provided in 
                        subparagraph (B) has been deposited 
                        electronically or by an applicable payment that 
                        has been deposited by check on any date in the 
                        lookback period, the financial institution, 
                        upon the request of the account holder, shall 
                        treat the amount of the funds in the account at 
                        the time of the request, up to the amount of 
                        the applicable payment (in addition to any 
                        amounts otherwise protected under part 212 of 
                        title 31, Code of Federal Regulations), as 
                        exempt from a garnishment order without 
                        requiring the consent of the party serving the 
                        garnishment order or the judgment creditor.
                            (iii) Liability.--A financial institution 
                        that acts in good faith in reliance on clause 
                        (i) or (ii) shall not be subject to liability 
                        or regulatory action under any Federal or State 
                        law, regulation, court or other order, or 
                        regulatory interpretation for actions 
                        concerning any applicable payments.
                    (D) Preservation of reclamation rights.--This 
                paragraph shall not alter the status of applicable 
                payments as tax refunds or other nonbenefit payments 
                for purpose of any reclamation rights of the Department 
                of the Treasury or the Internal Revenue Service as per 
                part 210 of title 31, Code of Federal Regulations.
                    (E) Definitions.--For purposes of this paragraph--
                            (i) Account holder.--The term ``account 
                        holder'' means a natural person whose name 
                        appears in a financial institution's records as 
                        the direct or beneficial owner of an account.
                            (ii) Account review.--The term ``account 
                        review'' means the process of examining 
                        deposits in an account to determine if an 
                        applicable payment has been deposited into the 
                        account during the lookback period. The 
                        financial institution shall perform the account 
                        review following the procedures outlined in 
                        section 212.5 of title 31, Code of Federal 
                        Regulations and in accordance with the 
                        requirements of section 212.6 of title 31, Code 
                        of Federal Regulations.
                            (iii) Applicable payment.--The term 
                        ``applicable payment'' means--
                                    (I) any advance refund amount paid 
                                pursuant to section 6428C(g) of 
                                Internal Revenue Code of 1986 (as added 
                                by this section),
                                    (II) any payment made by a 
                                possession of the United States with a 
                                mirror code tax system (as defined in 
                                subsection (b) of this section) 
                                pursuant to such subsection which 
                                corresponds to a payment described in 
                                subclause (I), and
                                    (III) any payment made by a 
                                possession of the United States without 
                                a mirror code tax system (as so 
                                defined) pursuant to subsection (b) of 
                                this section.
                            (iv) Garnishment.--The term ``garnishment'' 
                        means execution, levy, attachment, garnishment, 
                        or other legal process.
                            (v) Garnishment order.--The term 
                        ``garnishment order'' means a writ, order, 
                        notice, summons, judgment, levy, or similar 
                        written instruction issued by a court, a State 
                        or State agency, a municipality or municipal 
                        corporation, or a State child support 
                        enforcement agency, including a lien arising by 
                        operation of law for overdue child support or 
                        an order to freeze the assets in an account, to 
                        effect a garnishment against a debtor.
                            (vi) Lookback period.--The term ``lookback 
                        period'' means the two month period that begins 
                        on the date preceding the date of account 
                        review and ends on the corresponding date of 
                        the month two months earlier, or on the last 
                        date of the month two months earlier if the 
                        corresponding date does not exist.
            (5) Agency information sharing and assistance.--
                    (A) In general.--The Commissioner of Social 
                Security, the Railroad Retirement Board, and the 
                Secretary of Veterans Affairs shall each provide the 
                Secretary of the Treasury (or the Secretary's delegate) 
                such information and assistance as the Secretary of the 
                Treasury (or the Secretary's delegate) may require for 
                purposes of--
                            (i) making payments under section 6428C(g) 
                        of the Internal Revenue Code of 1986 to 
                        individuals described in paragraph (6)(A) 
                        thereof, or
                            (ii) providing administrative assistance to 
                        a possession of the United States (as defined 
                        in subsection (c)(3)(A)) to allow such 
                        possession to promptly distribute payments 
                        under subsection (c) to its residents.
                    (B) Exchange of information with possessions.--Any 
                information provided to the Secretary of the Treasury 
                (or the Secretary's delegate) pursuant to subparagraph 
                (A)(ii) may be exchanged with a possession of the 
                United States in accordance with the applicable tax 
                coordination agreement for information exchange and 
                administrative assistance that the Internal Revenue 
                Service has agreed to with such possession.
            (6) Conforming amendments.--
                    (A) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``6428C,'' 
                after ``6428B,''.
                    (B) The table of sections for subchapter B of 
                chapter 65 of the Internal Revenue Code of 1986 is 
                amended by inserting after the item relating to section 
                6428B the following new item:

``Sec. 6428C. Energy rebates to individuals.''.
    (d) Reports to Congress.--Each week beginning after the date of the 
enactment of this Act and beginning before December 31, 2022, on Friday 
of such week, not later than 3 p.m. eastern time, the Secretary of the 
Treasury shall provide a written report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate. Such report shall include the following information with 
respect to payments made pursuant to section 6428B of the Internal 
Revenue Code of 1986:
            (1) The number of scheduled payments sent to the Bureau of 
        Fiscal Service for payment by direct deposit or paper check for 
        the following week (stated separately for direct deposit and 
        paper check).
            (2) The total dollar amount of the scheduled payments 
        described in paragraph (1).
            (3) The number of direct deposit payments returned to the 
        Department of the Treasury and the total dollar value of such 
        payments, for the week ending on the day prior to the day on 
        which the report is provided.
            (4) The total number of letters related to payments under 
        section 6428C of such Code mailed to taxpayers during the week 
        ending on the day prior to the day on which the report is 
        provided.
                                 <all>