“(a) In general.—In the case of an eligible individual, there shall be allowed a credit against the tax imposed by subtitle A for the covered taxable year in an amount equal to the applicable tariff refund amount.

“(b) Treatment of credit.—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.

“(c) Eligible individual.—For purposes of this section, the term ‘eligible individual’ means any individual who, on the date on which any covered court order is issued, is an individual other than—

“(1) any nonresident alien individual,

“(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

“(3) an estate or trust.

“(d) Covered taxable year.—For purposes of this section, the term ‘covered taxable year’ means, with respect to an individual, the most recent taxable year of such individual ending before the date on which a covered court order is issued.

“(e) Covered court order.—

“(1) IN GENERAL.—For purposes of this section, the term ‘covered court order’ means a final court order which requires the Federal Government to repay tariff revenues collected pursuant to an unlawfully imposed tariff.

“(2) UNLAWFUL TARIFF.—For purposes of paragraph (1), the term ‘unlawful tariff’ means a tariff imposed unlawfully after January 20, 2025, and before the date of the enactment of this section.

“(f) Covered tariff revenues.—For purposes of this section, the term ‘covered tariff revenues’ means the aggregate amount of tariff revenues required to be repaid by the Federal Government pursuant to a covered court order.

“(g) Applicable tariff refund amount.—

“(1) IN GENERAL.—For purposes of subsection (a), the term ‘applicable tariff refund amount’ means, with respect to any individual, an amount equal to—

“(A) the individual tariff refund amount, multiplied by

“(B) the number of individuals in such individual’s household.

“(2) HOUSEHOLD.—For purposes of this subsection, the number of individuals in an individual’s household for any taxable year is equal to the sum of—

“(A) 1 (2 in the case of a joint return), plus

“(B) the number of dependents of the individual for such taxable year.

“(3) INDIVIDUAL TARIFF REFUND AMOUNT.—The term ‘tariff refund amount’ means the amount that the Secretary determines is equal to the quotient of—

“(A) the aggregate amount of covered tariff revenues, divided by

“(B) the aggregate number of individuals in the households of eligible individuals.

“(h) Coordination with advance refund of credit.—

“(1) REDUCTION OF REFUNDABLE CREDIT.—The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the individual (or, except as otherwise provided by the Secretary, any dependent of the individual) under subsection (i). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

“(2) JOINT RETURNS.—Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (i) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

“(i) Advanced payment.—

“(1) IN GENERAL.—Each eligible individual shall be treated as having made a payment against the tax imposed by chapter 1 for the covered taxable year in an amount equal to the amount of the credit allowed to such individual under subsection (a) for such covered taxable year.

“(2) TIMING OF PAYMENT.—The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible.

“(3) NO INTEREST.—No interest shall be allowed on any overpayments attributable to this subsection.

“(4) NOTICE TO TAXPAYER.—Not later than 15 days after the date on which the Secretary distributed any payment to an eligible individual pursuant to this subsection, notice shall be sent by mail to such individual’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.”.

“(a) In general.—In the case of an eligible individual, there shall be allowed a credit against the tax imposed by subtitle A for the covered taxable year in an amount equal to the applicable tariff refund amount.

“(b) Treatment of credit.—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.

“(c) Eligible individual.—For purposes of this section, the term ‘eligible individual’ means any individual who, on the date on which any covered court order is issued, is an individual other than—

“(1) any nonresident alien individual,

“(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

“(3) an estate or trust.

“(d) Covered taxable year.—For purposes of this section, the term ‘covered taxable year’ means, with respect to an individual, the most recent taxable year of such individual ending before the date on which a covered court order is issued.

“(e) Covered court order.—

“(1) IN GENERAL.—For purposes of this section, the term ‘covered court order’ means a final court order which requires the Federal Government to repay tariff revenues collected pursuant to an unlawfully imposed tariff.

“(2) UNLAWFUL TARIFF.—For purposes of paragraph (1), the term ‘unlawful tariff’ means a tariff imposed unlawfully after January 20, 2025, and before the date of the enactment of this section.

“(f) Covered tariff revenues.—For purposes of this section, the term ‘covered tariff revenues’ means the aggregate amount of tariff revenues required to be repaid by the Federal Government pursuant to a covered court order.

“(g) Applicable tariff refund amount.—

“(1) IN GENERAL.—For purposes of subsection (a), the term ‘applicable tariff refund amount’ means, with respect to any individual, an amount equal to—

“(A) the individual tariff refund amount, multiplied by

“(B) the number of individuals in such individual’s household.

“(2) HOUSEHOLD.—For purposes of this subsection, the number of individuals in an individual’s household for any taxable year is equal to the sum of—

“(A) 1 (2 in the case of a joint return), plus

“(B) the number of dependents of the individual for such taxable year.

“(3) INDIVIDUAL TARIFF REFUND AMOUNT.—The term ‘tariff refund amount’ means the amount that the Secretary determines is equal to the quotient of—

“(A) the aggregate amount of covered tariff revenues, divided by

“(B) the aggregate number of individuals in the households of eligible individuals.

“(h) Coordination with advance refund of credit.—

“(1) REDUCTION OF REFUNDABLE CREDIT.—The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the individual (or, except as otherwise provided by the Secretary, any dependent of the individual) under subsection (i). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

“(2) JOINT RETURNS.—Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (i) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

“(i) Advanced payment.—

“(1) IN GENERAL.—Each eligible individual shall be treated as having made a payment against the tax imposed by chapter 1 for the covered taxable year in an amount equal to the amount of the credit allowed to such individual under subsection (a) for such covered taxable year.

“(2) TIMING OF PAYMENT.—The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible.

“(3) NO INTEREST.—No interest shall be allowed on any overpayments attributable to this subsection.

“(4) NOTICE TO TAXPAYER.—Not later than 15 days after the date on which the Secretary distributed any payment to an eligible individual pursuant to this subsection, notice shall be sent by mail to such individual’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.”.