American Worker Rebate Act of 2025

The American Worker Rebate Act of 2025 would create a temporary, tariff-funded tax credit for eligible individuals starting with the 2025 tax year. The credit is designed to return a portion of tariff revenues to working people in the form of an advance refund and an annual credit against federal income tax. The per-person base amount is either $600 or a calculable share of annual tariff proceeds, whichever is larger, with an additional amount equal to the base times the number of qualifying children. The credit phases down by 5% of adjusted gross income (AGI) above specific income thresholds. The program is time-limited, with advance refunds for the 2024 year available only through 2026 and subject to various administrative rules, including identification number requirements and coordination with benefits in U.S. possessions. The bill also contains provisions to prevent double dipping with other credits, requires regulatory guidance, and directs a public awareness campaign. In short, the bill would temporarily redistribute a portion of tariff revenue to tax filers (especially families with children) as a refundable-like advance and an ongoing tax credit, with eligibility and amounts tied to tariff receipts and income, and with administration handled by the IRS and Treasury.