American Tariff Rebate Act

The American Tariff Rebate Act establishes a one-time tax credit for eligible individuals in the first taxable year beginning in 2026, providing a base amount of $2,000 (or $4,000 for joint filers) plus an additional $600 for each dependent. The bill mandates that these rebates be distributed as advance payments to taxpayers who filed returns for the 2025 tax year, with provisions allowing the IRS to use data from prior years or Social Security records for those who have not recently filed. To fund this program, the legislation permanently rescinds approximately $91.5 billion in previously appropriated funds designated for border infrastructure and detention capacity. Additionally, the bill repeals extended reduced income tax rates and lowers the estate and gift tax exemption amount to $10 million per individual.