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

This bill amends the Internal Revenue Code of 1986 to create an individual tariff refund credit , allowing eligible individuals to receive a tax credit against their income tax. An individual becomes eligible when a covered court order is issued, which is defined as a final court order requiring the Federal Government to repay tariff revenues collected from an unlawful tariff . These unlawful tariffs must have been imposed after January 20, 2025, and before the bill's enactment date. The credit amount, known as the applicable tariff refund amount , is calculated by multiplying an individual tariff refund amount by the number of individuals in an eligible household, including dependents. The individual tariff refund amount is determined by the Secretary of the Treasury, based on the aggregate amount of covered tariff revenues divided by the total number of individuals in all eligible households. The credit is treated as an advanced payment, with provisions for rapid refunds and no interest, and the bill also ensures that U.S. possessions receive equivalent benefits. Furthermore, the bill establishes a new excise tax on certain tariff refunds , imposing a 100% tax on non-qualifying tariff refunds received by large corporations. This tax applies to repayments of tariff revenues collected from the taxpayer in the course of their trade or business. An exception exists if the taxpayer can demonstrate that price increases on their products during the covered period did not exceed 50% of the tariffs imposed on inputs, excluding increases attributable to inflation. The amendments related to the individual credit apply to taxable years beginning after December 31, 2024, while the excise tax applies to amounts received after December 31, 2025.