S.Amdt. 486

SA 486. Mr. THUNE submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 1, beginning with line 6, strike all through page
735, line 7, and insert the following:

SEC. 2. REBATE TO ALL AMERICANS WITH TAX LIABILITY.

(a) In General.--Section 6429 of the Internal Revenue Code
of 1986 is amended to read as follows:

``SEC. 6429. 2009 RECOVERY REBATES FOR INDIVIDUALS.

``(a) In General.--In the case of an eligible individual
who has net income tax liability for the taxpayer's first
taxable year beginning in 2007, there shall be allowed a
credit against the tax imposed by subtitle A for the
taxpayer's first taxable year beginning in 2009 an amount
equal to the lesser of--
``(1) the taxpayer's net income tax liability for the
taxpayer's first taxable year beginning in 2007, or
``(2) $4,730 ($9,460 in the case of a joint return) .
``(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) Definitions.--For purposes of this section--
``(1) Net income tax liability.--The term `net income tax
liability' means the excess of--
``(A) the sum of the taxpayer's regular tax liability
(within the meaning of section 26(b)) and the tax imposed by
section 55 for the taxable year, over
``(B) the credits allowed by part IV (other than section 24
and subpart C thereof) of subchapter A of chapter 1.
``(2) Eligible individual.--The term `eligible individual'
means any individual other than--
``(A) any nonresident alien individual,
``(B) 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
``(C) an estate or trust.
``(d) Coordination With Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (e).
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.--In the case of a refund or credit
made or allowed under subsection (e) 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.
``(e) Advance Refunds and Credits.--
``(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning
in 2007, and who had a net income tax liability for such
first taxable year, shall be treated as having made a payment
against the tax imposed by chapter 1 for such first taxable
year in an amount equal to the advance refund amount for such
taxable year.
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if this section (other than this subsection) had
applied to such taxable year.
``(3) Timing of payments.--The Secretary shall, subject to
the provisions of this title, refund or credit any
overpayment attributable to this section as rapidly as
possible. No refund or credit shall be made or allowed under
this subsection after December 31, 2009.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this section.
``(f) Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) to an eligible individual who does not include
on the return of tax for the taxable year--
``(A) such individual's valid identification number, and
``(B) in the case of a joint return, the valid
identification number of such individual's spouse.
``(2) Valid identification number.--For purposes of
paragraph (1), the term `valid identification number' means a
social security number issued to an individual by the Social
Security Administration. Such term shall not include a TIN
issued by the Internal Revenue Service.
``(3) Special rule for members of the armed forces.--
Paragraph (1) shall not apply to a joint return where at
least 1 spouse was a member of the Armed Forces of the United
States at any time during the taxable year.''.
(b)  Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the Treasury
shall pay to each possession of the United States with a
mirror code tax system amounts equal to the loss to that
possession by reason of the amendments made by this section.
Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of
the respective possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not
have a mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the aggregate
benefits that would have been provided to residents of such
possession by reason of the amendments made by this section
if a mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession has a plan, which has been approved by the
Secretary of the Treasury, under which such possession will
promptly distribute such payments to the residents of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United
States income taxes for any taxable year under section 6429
of the Internal Revenue Code of 1986 (as amended by this
section) to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of the amendments made by this
section for such taxable year, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from the credit allowed under section 36A of the
Internal Revenue Code of 1986 (as added by this section).
(c) Refunds Disregarded in the Administration of Federal
Programs and Federally Assisted Programs.--Any credit or
refund allowed or made to any individual by reason of section
6429 of the Internal Revenue Code of 1986 (as amended by this
section) or by reason of subsection (b) of this section shall
not be taken into account as income and shall not be taken
into account as resources for the month of receipt and the
following 2 months, for purposes of determining the
eligibility of such individual or any other individual for
benefits or assistance, or the amount or extent of benefits
or assistance, under any Federal program or under any State
or local program financed in whole or in part with Federal
funds.
(d) Authority Relating to Clerical Errors.--Section
6213(g)(2)(L) is amended by striking ``or 6428'' and
inserting ``6428, or 6429''.
(e) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by striking ``and
6428'' and inserting ``6428, and 6429''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6428'' and inserting ``6428, or
6429''.
(3) The table of sections for subchapter B of chapter 65 is
amended by striking the item relating to section 6429 and
inserting the following new item:

``Sec. 6429. 2009 recovery rebates for individuals.''.
(f) Effective Date.--This section, and the amendments made
by this section, shall apply to taxable years beginning after
December 31, 2008.
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