Gas Stimulus Check? Not Exactly. Where Gas Tax Rebate Payments Could Happen – CNET

What’s happening Lawmakers in Congress and state legislatures are considering giving motorists cash rebates to defray the elevated cost of gasoline. Why it matters A gallon of gas averaged more than $4 a gallon nationwide since March, hitting $5 in more recent weeks. With the price of gas hovering under $5 a gallon nationwide , lawmakers are looking for ways to ease the pain at the pump.

Some states have instituted a gas tax holiday , and President Joe Biden has endorsed a pause on the federal gas tax . But another option being touted is a gas “stimulus check” that would give eligible Americans $100 a month through the end of the year, or for as long as the price of gas exceeds $4 a gallon in their state. Democratic Reps.

Lauren Underwood, Mike Thompson and John Larson are pushing the idea in Congress with the Gas Rebate Act of 2022, introduced in March. “Americans are feeling the impact at the pump of Vladimir Putin’s illegal invasion of Ukraine, and right now we must work together on commonsense policy solutions to ease the financial burden that my constituents are feeling,” Thompson said in a March 17 statement. Here’s what you need to know about the gas rebate plan, including who would benefit from it, how long it would last, and similar efforts being considered on the state level.

What is the Gas Rebate Act? If signed into law, the measure will give eligible Americans and their dependents $100 each for every month left in 2022 that gasoline continues to average more than $4 a gallon. The US passed that threshold in March , with little sign that the price would drop back down this year. (The individual average in all 50 states surpassed $4 a gallon in May .

) Who would be eligible for a rebate? As with the pandemic stimulus checks, compensation depends on income levels: Individuals earning less than $75,000 will get the full $100. The amount would diminish the more you earn, and individuals making over $80,000 wouldn’t be eligible for any rebate. Joint filers earning less than $150,000 would receive the full $100, phased out at $160,000.

Does the White House support a gas rebate? Biden said he supports pausing the federal gas tax for three months and encouraged individual states to consider similar money-saving efforts, including “consumer rebates and relief payments,” the White House said in a June 22 statement The president told reporters that a nationwide gas rebate card program “is part of what we’re considering,” Cox Media reported . The administration first considered rebate cards back in March but determined that the computer chip shortage would make it hard to produce enough cards, according to The Washington Post . In addition, there would be no mechanism to ensure consumers didn’t use the cards for purchases other than gasoline, and getting support from Congress would be a longshot.

What individual states are considering gas rebates? A handful of areas have begun or are looking at gas refunds. California After efforts to suspend California’s 51-cent gas tax failed, Gov. Gavin Newsom inserted a gas tax rebate into the state budget in May.

Newsom had wanted every household with a car registered in the state to receieve a $400 debit card, up to two cars per family. But he compromised with lawmakers and agreed to suspend the state sales tax on diesel fuel . Residents will also receive “inflation relief” checks of up to $1,050 per family.

North Carolina Democratic state senators have proposed giving all licensed adult drivers a one-time payment of $200 toward fueling up. That’s roughly what the average North Carolinian pays in state gas taxes from July to December, according to State Sen. Michael Garrett, a co-sponsor of the gas rebate bill.

The plan would cost $1. 3 billion, but sponsors say it could come out of the state’s approximate $4. 241 billion tax surplus.

“This approach keeps the Highway Fund and the Highway Trust Fund whole, while still collecting revenue from non-residents passing through our state using our roads, highways, and bridges,” Garrett said in a statement. If their bill passes, the rebates would be sent by Oct. 1.

Chicago The Windy City has already started issuing some of the 50,000 prepaid $150 gas cards and 100,000 prepaid $50 transit cards approved by the city council. Those interested in benefiting from the Chicago Moves plan must be at least 18 years old, in possession of a valid driver’s license and earn no more than $73,000, the city’s median income. Applications must be received by the first of the month, and recipients are chosen via lottery monthly through to September.

More on gas Federal Gas Tax Holiday: Is Your State Pressing Pause on Fuel Tax? Quick Tips for Beating High Pump Prices Prepare for Gas Prices to Bump Back up Again.