Summary of H.R. 7636: Individual Tariff Refund Credit Act

Overview

This bill, titled the "Individual Tariff Refund Credit Act," aims to amend the Internal Revenue Code to establish a new individual tax credit related to tariffs imposed by the federal government.

Key Provisions

The main components of the bill include:

1. Tariff Refund Credit: The bill would create a new refundable tax credit, called the "Individual Tariff Refund Credit," that individuals can claim on their federal income tax returns.

2. Credit Amount: The credit would be equal to the total amount of tariffs paid by the individual during the tax year on purchases of goods and services.

3. Eligibility: All individual taxpayers would be eligible to claim the credit, regardless of income level.

4. Reporting Requirements: Businesses and importers would be required to provide documentation to individuals detailing the tariff amounts paid on goods and services purchased.

Potential Impact

If enacted, this legislation could have several impacts:

• Financial Relief for Consumers: By providing a tax credit to offset tariff costs, the bill aims to provide financial relief to individual consumers who bear the burden of tariffs on imported goods.

• Increased Transparency: The reporting requirements for businesses could increase transparency around tariff costs and their impact on consumers.

• Potential Budgetary Implications: Depending on the total amount of credits claimed, the legislation could have a significant impact on federal tax revenue and the government's budget.

Procedural Aspects

The bill was introduced in the House of Representatives on February 20, 2026 and has been referred to the House Committee on Ways and Means for further consideration. As an introduced bill, it has not yet been voted on or passed by Congress.