The "American Worker Rebate Act of 2025" proposes to amend the Internal Revenue Code of 1986 by creating a new section, 6428C, to provide tariff rebates for individuals. The stated policy is to use revenue generated from tariffs on foreign imports to offer immediate tax relief to working people. This credit would be applied against the tax imposed for the first taxable year beginning in 2025.

Eligible individuals would receive a credit equal to the greater of $600 or a calculated amount based on the total "qualifying tariff proceeds" divided by the number of eligible individuals and qualifying children. Joint filers would receive 200 percent of this applicable amount, and an additional amount would be provided for each qualifying child. These rebates are funded by revenues from duties, including supplemental duties, imposed after January 20, 2025.

The credit amount is subject to an adjusted gross income limitation, phasing out for incomes exceeding $150,000 for joint filers, $112,500 for heads of household, and $75,000 for other taxpayers. The bill also establishes a system for advance refunds and credits, treating them as payments against tax for the 2024 taxable year, with provisions for rapid electronic disbursement and notice to taxpayers. Importantly, these rebates are protected from being reduced or offset by other federal or state debts.

To ensure proper distribution, recipients must provide valid identification numbers, such as a Social Security Number, for themselves, their spouse, and any qualifying children. The Secretary of the Treasury is also mandated to conduct a public awareness campaign to inform individuals, including those who may not typically file tax returns, about the availability of this new credit and rebate.