The American Worker Rebate Act of 2025 creates a new tax credit that distributes revenues collected from tariffs imposed on foreign imports directly to American taxpayers. Eligible individuals would receive a rebate of at least $600 for the 2025 tax year, with the actual amount potentially higher depending on tariff revenues collected—calculated by dividing total tariff proceeds by the number of eligible individuals and their qualifying children. The credit increases for joint filers (who receive 200 percent of the applicable amount) and provides additional rebates for each qualifying child.
The bill also establishes advance payments to eligible taxpayers who filed returns in 2024, with the IRS required to distribute these payments by December 31, 2026. The credit phases out for higher-income earners at rates of $150,000 for joint filers, $112,500 for heads of household, and $75,000 for single filers. Finally, the legislation requires the Treasury Department to conduct a public awareness campaign to inform Americans about the rebate and prevents the rebate from being offset by other federal debts or liabilities.
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