What does Preamble of HR 7636 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose of the bill is to establish the individual tariff refund credit.

What does INDIVIDUAL TARIFF REFUND CREDIT. of HR 7636 do?

This section amends the Internal Revenue Code of 1986 to add a new section, 6436, establishing an individual tariff refund credit. The credit is available to eligible individuals for a covered taxable year, equal to the applicable tariff refund amount. An eligible individual is defined as someone who received a court order requiring the Federal Government to repay unlawfully imposed tariffs after January 20, 2025. The 'applicable tariff refund amount' is calculated based on the individual's household size and the aggregate amount of covered tariff revenues divided by the aggregate number of eligible individuals. The credit is reduced by any advance refunds or credits made to the individual under subsection (i). Eligible individuals are treated as having made a payment against their tax for the covered taxable year, with potential for refunds or credits. Payments are to be made to U.S. possessions with mirror code tax systems to offset any revenue loss resulting from these amendments. The amendments apply to taxable years beginning after December 31, 2024.

What does EXCISE TAX ON CERTAIN TARIFF REFUNDS. of HR 7636 do?

This section amends the Internal Revenue Code of 1986 by adding a new subchapter, Sec. 4969, imposing an excise tax on certain tariff refunds. The tax is equal to 100 percent of the 'non-qualifying tariff refunds' received by a 'covered taxpayer'. An exception to the tax applies if a taxpayer can demonstrate that any increase in product prices during the 'covered period' did not exceed 50 percent of the amount of tariffs imposed. The 'covered period' begins on January 20, 2025, and ends on the date a 'covered court order' is issued. Price increases attributable to inflation are not considered when determining whether the exception applies. A 'covered taxpayer' is a corporation or taxpayer with gross receipts exceeding $1,000,000,000. A 'non-qualifying tariff refund' is a repayment of tariff revenues pursuant to a 'covered court order'.

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To amend the Internal Revenue Code of 1986 to establish the individual tariff refund credit. — HR. 7636

Last updated: 2/20/2026 · Introduced: 2/20/2026

Author: Mike Thompson (D-CA)

TL;DR (AI)

This bill establishes an individual tariff refund credit for eligible individuals who received court orders requiring the Federal Government to repay unlawfully imposed tariffs after January 20, 2025.
The bill imposes a 100% excise tax on certain tariff refunds received by large corporations (with gross receipts exceeding $1,000,000,000) unless they can demonstrate that price increases during a specified period did not exceed 50% of the tariffs imposed.
To offset revenue loss, payments will be made to U.S. possessions with mirror code tax systems.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, individual tariff refund credit., and 1 more.

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