Title: Return on Investment Accountability Act
Policy area: Taxation

Summary:
Return on Investment Accountability Act
This bill amends the Internal Revenue Code to allow a refundable tax credit for eligible individuals who reside in states in which the federal tax burden of the state exceeds the federal outlays received by the state.
An "eligible individual" is an individual who is: (1) the taxpayer, the spouse of the taxpayer, or a dependent of the taxpayer; (2) a citizen of the United States or lawfully present in the United States; and (3) a resident of the state for more than half of the year. The term does not include an estate, trust, or an individual for whom another taxpayer is allowed a deduction for a personal exemption.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4161 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4161

 To amend the Internal Revenue Code of 1986 to provide for payments to 
   residents of States for which the Federal tax burden exceeds the 
                       Federal outlays received.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 2017

  Mr. Gottheimer (for himself and Mr. Lance) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide for payments to 
   residents of States for which the Federal tax burden exceeds the 
                       Federal outlays received.

    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 ``Return on Investment Accountability 
Act''.

SEC. 2. PAYOR STATE CREDIT AMOUNT FOR INDIVIDUALS.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by inserting after section 6427 the following 
new section:

``SEC. 6428. PAYOR STATE CREDIT AMOUNT FOR INDIVIDUALS.

    ``(a) In General.--There shall be allowed to the taxpayer with 
respect to each eligible individual as a credit against the tax imposed 
by subtitle A for a taxable year an amount equal to the individual 
payor State amount.
    ``(b) Individual Payor State Amount.--For purposes of this 
section--
            ``(1) In general.--The term `individual payor State amount' 
        means the amount that is the same proportion of the payor State 
        amount as the ratio that one bears to all eligible individuals 
        of the State for the calendar year preceding the calendar year 
        in which the taxable year begins.
            ``(2) Payor state amount.--The term `payor State amount' 
        means the amount equal to the excess (if any) of--
                    ``(A) the Federal tax burden of the State for the 
                calendar year preceding the calendar year in which the 
                taxable year begins, over
                    ``(B) the Federal outlays received by the State for 
                such preceding calendar year for the calendar year 
                preceding the calendar year in which the taxable year 
                begins.
            ``(3) Federal tax burden and federal outlays.--
                    ``(A) In general.--The Secretary shall calculate 
                the Federal tax burden of each State for each calendar 
                year and the Federal outlays received by the State for 
                the calendar year.
                    ``(B) Federal tax burden.--For purposes of 
                subparagraph (A), the Secretary shall--
                            ``(i) treat all Federal taxes paid by 
                        eligible individuals as a burden on the State 
                        in which such individual resides; and
                            ``(ii) treat all Federal taxes paid by a 
                        legal business entity as a burden on the State 
                        in which economic activity of such entity is 
                        performed in the same proportion that the 
                        economic activity of such entity in such State 
                        bears to the economic activity of such entity 
                        in all the States.
                    ``(C) Federal outlays.--For purposes of 
                subparagraph (A), a Federal contract award shall be 
                treated as a Federal outlay received by each State in 
                which performance under the award takes place in the 
                same proportion that such performance in such State 
                bears to such performance in all the States.
            ``(4) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means any individual who is--
                            ``(i) the taxpayer, the spouse of the 
                        taxpayer, or a dependent of the taxpayer,
                            ``(ii) a citizen of the United States or 
                        lawfully present in the United States, and
                            ``(iii) a resident of the payor State for 
                        more than half of the taxable year.
                    ``(B) Exception.--The term `eligible individual' 
                does not include--
                            ``(i) 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, or
                            ``(ii) an estate or trust.
    ``(c) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (e). 
        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.--In the case of a refund or credit 
        made or allowed under subsection (e) 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.
    ``(e) Advance Refunds and Credits.--
            ``(1) In general.--Each individual who was an eligible 
        individual for a calendar year shall be treated as having made 
        a payment against the tax imposed by chapter 1 for such first 
        taxable year in an amount equal to the advance refund amount 
        for such taxable year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for the taxable 
        year in which the calendar year begins (other than subsection 
        (d) and this subsection) had applied to such taxable year.
            ``(3) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.
    ``(f) Identification Number Requirement.--
            ``(1) In general.--No credit shall be allowed under 
        subsection (a) to an eligible individual who does not include 
        on the return of tax for the taxable year--
                    ``(A) such individual's valid identification 
                number, and
                    ``(B) in the case of a joint return, the valid 
                identification number of such individual's spouse.
            ``(2) Valid identification number.--For purposes of 
        paragraph (1), the term `valid identification number' means a 
        social security number issued to an individual by the Social 
        Security Administration. Such term shall not include a TIN 
        issued by the Internal Revenue Service.''.
    (b) Administrative Amendments.--
            (1) Definition of deficiency.--Section 6211(b)(4)(A) of 
        such Code is amended by inserting ``6428,'' after 
        ``168(k)(4),''.
            (2) Mathematical or clerical error authority.--Section 
        6213(g)(2) of such Code is amended by striking ``and'' at the 
        end of subparagraph (P), by striking the period at the end of 
        subparagraph (R) and inserting ``, and'', and by inserting 
        after subparagraph (R) the following:
                    ``(S) an omission of information required under 
                section 6428(f) to be included on a return.''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``6428,'' before ``or 
        6431''.
            (2) The table of sections for subchapter B of chapter 65 of 
        such Code is amended by inserting after the item relating to 
        section 6427 the following new item:

``Sec. 6428. Payor State credit amount for individuals.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after one year after the date of the 
enactment of this Act.
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